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2017/5 New VAT Regime for e-Services in Turkey

A draft communique has been published on Turkish Revenue Administration's website on December 22, 2017 regarding services provided by parties that have no residence, workplace, registered head office and business center in Turkey to individual customers with no VAT-registration (B2C). Draft communique is expected to become effective as of 01/01/2018.


The article 41 of the Law numbered 7061 and dated November 28, 2017 on Amendment of Certain Taxes and Laws and Other Acts has amended the Article 9 of the VAT Law. With this amendment, it is stated that VAT amount of services given electronically from parties that have no residence, workplace, registered head office and business center in Turkey to individuals who are not VAT taxpayers is declared and paid by service providers and it is also stated that the Ministry of Finance is authorized to set out procedures and principles regarding the scope and implementation of services provided electronically.

In this scope, draft communique was published on December 22, 2017 on the Revenue Administration's official website and it is related to services provided electronically from parties that have no residence, workplace, registered head office and business center in Turkey to real persons who are not VAT taxpayer. This communique is set to take effect on January 1, 2018. However, it has been posted on Revenue Administration's official website in order to share opinion with public.  

Explanations in the Draft Communique

Covered Services

Electronic Services are defined under 3 main categories:

  • Radio and television broadcasting services

  • Telecommunication services

  • Other services provided in electronic environment

These services have been described in a very large scale in the draft communiqué. Some examples in the draft communiqué that are related to the services are as follows:

  • Monitoring or listening to radio and television programs at a user-selected time, depending on a program catalog organized by the media service provider

  • Voice, written and visual telephone services over the Internet

  • Accessing or downloading music, voices outside of music, movies

  • Accessing or downloading electronic books and other electronic publications

  • Accessing games or downloading games, in-game purchases and services for remote play of games

  • All kinds of software supply (including access and download) and updating

Registration Process

In return for an amount, parties that have no residence, workplace, registered head office and business center in Turkey and provide services stated in the draft communique to individuals who are not VAT taxpayers must register for VAT in Turkey. This registration is called " VAT Registration Special For Electronic Service Providers".  In this respect, service providers are required to declare VAT of these services electronically with  VAT Tax Return (#3).

For registration, the service providers shall fill the form on before they declare VAT return numbered 3 for the first time. After this form is filled out electronically and approved, "VAT Registration Special for Electronic Service Providers" will be established for service providers by Large Taxpayer Office Directorate in İstanbul.

Following the VAT registration, the taxpayer will be given a user code and a password in order to be able to operate in the internet tax office.

Taxpayers involved in this registration have no obligation to keep book and have their tax returns signed by CPAs.

Since there is no VAT credit mechanism related to these services, VAT incurred in Turkey will continue to remain as a cost. ​

Declaration and Payment

Electronic Service Providers will declare calculated VAT with numbered 3 Tax Return for the services provided electronically to individuals who are not VAT taxpayers in Turkey. Tax Returns will be submitted electronically to the tax office on a monthly basis through the internet tax office until the evening of the 24th day of the month following the taxation period.

The taxpayers in this scope are not obliged to submit tax returns for the months where there is no service provided electronically.

In case the amount related to service is calculated in foreign currency, the foreign currency amount will be converted into TRY with the foreign exchange buying rate announced by the Central Bank of Republic of Turkey and declaration will be made accordingly. Accrued VAT shall be paid until the evening of the 26th day of the month in which the Tax Return will be submitted. Payments could be made to tax offices, banks authorized for tax collection. Besides, payments could be made via the official website of the Revenue Administration ( with bank cards of the banks authorized to collection.​

Obligation to Provide Information

Banks and payment institutions that act as intermediary will declare the payments which is  made to electronic service providers to Revenue Administration quarterly and until the end of the month following each quarter in accordance with the format and transmission method determined by Revenue Administration.

Non Fulfillment of Obligations

For taxpayers that do not fulfill the declaration obligation related to services provided electronically placed in 9/1 article of the VAT Law numbered 3065 , tax penalty provisions of Tax Procedure Law  numbered 213 will be applied.

As the Draft version of the Communique has been shared by the public yet, we expect there might be changes until the Communique becomes effective officially. We will keep you posted about the developments on this issue.

Should you have questions about the issue please feel free to contact our Indirect Tax Service Department.

Best Regards,

2017/5 New VAT Regime for e-Services in Turkey​​