Turkey digital services VAT update

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 24^th 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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