07May2019

TAX BASE, AMOUNT AND RATIO ALTERATION IN VAT AND SPECIAL CONSUMPTION TAX

TAX BASE, AMOUNT AND RATIO ALTERATION IN VAT AND SPECIAL CONSUMPTION TAX

The 1013 numbered Presidential Decree published on 01.05.2019 dated and 30761 numbered Official Gazette, has made some alterations on the tax base, amount and ratio of VAT and Special Consumption Tax (“SCT”). The subject headings of these changes are as follows:

  • VAT implementation on construction contract works to be made for Darülaceze Directorate;
  • VAT implementation in curtain mechanisms;
  • Minimum lump sum tax implementation for some tobacco products;
  • SCT ratio differentiation on cell phones;
  • Tax base change in the determination of SCT amount to be cancelled regarding the scrapping vehicles.

The details of the above listed alterations are as follows:

A. AMENDMENTS REGARDING VAT RATIO

  1. The construction contract works to be made for Darülaceze Directorate shall be subjected to %1 VAT as of 01.05.2019.
  2. Curtains of which montage and motor mechanisms are partly aluminum, plastic and such materials, shall be subjected to %8 VAT as of 01.05.2019.

B. AMENDMENTS REGARDING SCT RATIO, TAX BASE AND TAX AMOUNT

1. AMENDMENTS REGARDING TOBACCO PRODUCTS

The 554 numbered Presidential Decree published on 05.01.2019 dated and 30646 numbered Official Gazette, has increased the SCT ratio to %67 and decreased the minimum lump sum tax ratio to zero for “the cigarettes include tobacco, cigarettes made from products that substitute tobacco, other goods that substitute tobacco, tobacco for snuff and chewing”.

The 1013 numbered Presidential Decree that is the subject of this article, has increased the minimum lump sum tax amounts which were at zero before; and redetermined each gram of goods within unit package of tobacco extract and snuff and tobacco for chewing, and “homogenized” or rearranged tobacco, other goods that substitute tobacco, and each cigarette per unit package that are subjected to retail sale, as 0,2679 TL.

2. AMENDMENTS REGARDING CELLULAR MOBILE PHONES

The special consumption tax base and ratios of the cellular transmitter mobile phones that has reveiver has changed. The updated tax bases and ratios to be valid as of 01.05.2019 shall be as follows:

8517.12.00.00.11 The cellular transmitter mobile phones that has reveiver Tax Ratio
Special Consumption Tax base below 640 TL %25
Special Consumption Tax base between 640 TL and 1500 TL %40
Others %50

3. TAX BASE ALTERATION ON DETERMINING SCT AMOUNT TO BE CANCELLED REGARDING THE SCRAPPING VEHICLES

A SCT reduction is foreseen in the amounts determined by the Ministry when buying the same kind of vehicles by scrapping or exporting the following: (i) tow trucks for semi-trailer in 8701.20 GTİP number; (ii) minibus, midibus and autobuses tht are capable of carrying ten or more person including the driver, in 87.02 GTİP number; (iii) automobile, panelvan, pickup, land vehicle, ATV, station wagon etc. vehicles in 87.03 GTİP number; (iv) van, panelvan, pick-up, small lory, truck etc. vehicles that carry stuff and in 87.04 number. According to this, the SCT reduction amounts are as follows:

a. Automobiles and land vehicles in 87.03 GTİP number:

Tax base is below 46.000 TL 10.000 TL
Tax base is between 46.000 TL and 80.000 TL 8.000 TL
Tax base is above 80.000 TL 3.000 TL

b. 10.000 TL for other vehicles

c. Tax base subjected to SCT reduction amounts determined for automobile and land vehicles in 87.03 GTİP number:

Tax base is below 70.000 TL 10.000 TL
Tax base is between 70.000 TL and 120.000 TL 8.000 TL
Tax base is above 120.000 TL 3.000 TL

You may reach the Turkish full text of the Presidential Decree here.

Written by Seda Arıcı, Posted in Taxation Law

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About the Author

Seda Arıcı

Legal Consultant | Attorney
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