Turkey digital services VAT update

Wed 7th Feb 2018

Turkey has provided an update on the VAT rules for non-resident providers of digital services to local consumers. VAT was imposed on such transactions from 1 January 2018.

Key clarifications include:

  • Details of the new online VAT registration process
  • There are no specific requirements for the maintenance of VAT records
  • Supplies to Turkish VAT registered customers are nil rated, reverse charge
  • VAT filings are on a monthly basis, by the 24th of the month following the reporting period
  • In the launch period, the first reporting period will be the first quarter of 2018, and the first return will due on 24 April 2018
  • Returns must detail VAT due in local liras, based on the exchange rate of the Turkish central bank at the time of the supply
  • In periods where there are no transactions, no return need be filed
  • Marketplaces for such services will be deemed liable for VAT compliance if the marketplace:
    • Requests the consideration
    • Sets the general terms and conditions of the service


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