Turkey introduces VAT on foreign B2C digital services

31 January 2018

From 1 January 2018, the Turkish Government introduced a VAT charge on all sales of e-services to consumers in Turkey.

Previously, non-resident businesses providing digital services in the country did not have an obligation to charge VAT on these types of supplies.  However in an effort to remove the unfair advantage that this gives them over resident companies, they will now have an obligation to charge VAT at 8% on their supplies going forward.

This new tax is applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.