Turkey’s Finance Ministry suggests that VAT on domestic advertising should be doubled from 18% to 36%. This would recover some local tax revenues from non-resident social networking sites that otherwise pay little tax in the country.
Other countries in Europe have also been looking for further tax revenue from Google’s online advertising income. The French tax authorities have confirmed that they intend to impose more tax on the search engine Google as it attempts to earn more income from its French activities. Italy was at one time planning to require all Google Adword income to be booked through Italian advertising agencies, so that the income would be sourced in Italy and subject to corporate income tax in the country.
