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2017/6 Draft VAT Communique of B2C e-Services Has Been Updated

Abstract: Scope of e- Services related to the draft communique which was 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 has been updated on December 27, 2017.

Scope of the Services Provided Electronically

As per the revised version of the draft Communique, services provided electronically are defined as the services provided over the internet or an electronic network. The main electronic services are listed below.

1.  Website/ webpage supply, domain supply, web hosting, other services related to the website/ webpage.

2.  Remote maintenance of computer software and hardware, remote system management and online data storage services.

3.  Sale of software and all digitized products, including accessing, downloading and updating (including antivirus programs, ad blocking programs, device drivers, filters for websites, and security wall)

4.  Preparation of databases, provision of images, texts and information, and similar services. The main services are listed below.

  • Services automatically generated through a computer via the internet or an electronic network in response to a specific data entered by the recipient (financial data, legal data etc.).

  • All kinds of services given related to the sale of goods and services by platforms that enable buyers and sellers to be brought together via internet or an electronic network (including the sale of the right to place goods or services on the website for sale).

  • Internet service packages that the telecommunication components form an auxiliary and sub-division (Including packages that have elements that go beyond internet access, such as content pages, playlists, website hosting, online discussion access, providing access to news, weather or road status reports).

  • Services for the creation and maintenance of a commercial or personal entity on electronic networks, such as a website/ webpage.

  • Access or download photos, pictures, screen protectors, desktop themes.

  • Accessing or downloading electronic books and other electronic publications.

  • Subscribe to online newspapers and magazines.

  • Web-log and web statistics services.

  • Online news, road and forecast reports.

  • Providing ad space on a website/ webpage including the banner ads.

  • Use of search engines and internet directories.

5. Music, movies, games (including games of chance, betting and gambling), political, cultural, artistic, sports, science and entertainment publications and events and all other applications and in-app purchases offered through computers, mobile phones and similar devices. The services listed below are also in this scope.

  • Accessing or downloading music, audio that are not considered as music, movies, etc.

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

  • Broadcast services where programs are watched or listened to at a time and at a request of the user, based on a program catalog organized by the media service provider

  • Supply of radio and television programs (over the internet or through an electronic network) that are not simultaneously broadcast on traditional radio and television networks.

6. Distance education services

  • Automatic distance education services, including virtual classrooms, with limited human intervention and provided via an internet or electronic network (except being used as a simple tool to maintain communication between the teacher and the student).

  • Delivery of workbooks that are completed online or marked automatically by students without human intervention

  • Education or technical courses that the content is transferred by a teacher on the internet or in an electronic network are not considered within this scope.

7.  Radio and television broadcasting services

Audiovisual or audiovisual radio and television broadcasting services for simultaneous listening or monitoring based on editorial responsibility of a media service provider and for the public, based on a certain flow of programs via electronic communication networks

When the radio and television broadcasting service is provided over the cable infrastructure and live broadcasting is available on the internet, these are also in the scope of Radio and television broadcasting services.

8. Other services that are qualitatively similar to those listed above and that are offered via internet or an electronic network.

Other Explainations Added To Draft Communique

For electronic services provided via a telecommunication network, interface or portal; VAT of services provided electronically is declared and paid by operators of telecommunication network, interface or portal in case electronic service provider is not explicitly indicated and this condition is not stated in the contract between parties, where the information about the service and the electronic service provider is not explicitly specified in the invoice and similar documents issued.

Besides, parties that have authority to demand amount from customer and determine general conditions of services or have obligation to perform the services are deemed as electronic service provider.

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. 

2017/6 Draft VAT Communique of B2C e-Services Has Been Updated​​