Turkey reviews VAT on digital services by foreign providers
- 18 April 2015 | Richard Asquith
Turkey is the latest country to confirm that it is reviewing extending Turkish VAT to digital services providers to its consumers by foreign providers.
In particular, it is interested in social and streaming media providers, including films, games, apps and e-books. Currently to revenue from such providers is only considered liable to Turkish VAT is the hosting of servers is in Turkey. In addition, and provider with local offices, employees etc would be liable to Turkish VAT.
Any changes are likely to come before the end of 2015.
Japan will levy consumption tax on foreign electronic services from 1 October, and South Korea will charge VAT from July 2015. The EU VAT digital services underwent a major overhaul in January 2015. This moved the place of supply from the country of the provider to the country of the consumer.