VAT Liabilities of Electronic Service Providers in Turkey

Topic of our paper is the new system in VAT taxation of B2C e-commerce - transactions between commercial corporations and customers executed via internet- in Turkey and the problems arising from such imposition of VAT on B2C e-commerce. This topic will be assessed in three parts. In the first part, general frame of VAT in Turkey will be briefly explained in order to understand the applicable new system in taxation of B2C e-commerce. In second part, the new system in taxation of B2C e-commerce regulated via Communique No. 17 on VAT and its problems will be elaborated and also evaluated. Particularly; the concept of electronic service provider, registration obligation of this person as taxpayer, threshold for relevant registration, the general and punitive measures against noncompliance of new system, the possible problems and failures will be arisen as to the application are the main points regarding this issue. In final part, possible drawbacks in the area of execution and the role of the banks in the new system and generally positive outcomes will be considered and shared about the new VAT system of B2C e-commerce. If it needs to make some general inferences, we think that what will happen in the future should be evaluated due to specific uncertainties arising from implementation of new system, although it seems to be working.

Abstract licence: CC BY-NC

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