On 5 February 2020, the Turkish tax administration has published the Draft General Communiqué on the Implementation of the Digital Services Tax (DST) on its website. The Turkish Parliament enacted Law No. 7194 on 5 December 2019 regarding DST at a rate of 7.5%.
The following advertising services offered in digital media:
- Search engine ads, such as showing the ad with search results, or showing the advertiser search result in priority order,
- Banner ads,
- All kinds of audio, visual or written advertisements published in digital media before, during or after watching video or user sharing,
- Ads automatically transmitted online via software in electronic devices,
- Advertising services such as pop-up ads.
Services for the sale of audio, visual or digital content and use of digital content
Sales of any audible, visual or digital content (including computer programs, applications, music, video, video games, in-game applications etc.) via a digital platform as well as services provided for listening, watching, playing or recording or using such content by use of electronic devices.
Exemptions and exceptions
Taxpayers will get exemption of the tax include those with global revenues less than EUR 750 million and Turkish revenues less than Turkish Lira 20 million from taxable services.
Digital Services Tax Rate
The digital services tax rate is 7.5%. The President of Turkey has authority to reduce the digital services tax rate to 1% and also to increase the rate up to 15%.
The Communiqué also clarifies about DST notification requirements, tax declaration procedure and payment methods. The DST will enter into force as of 1 March 2020.
