ARTICLE
17 November 2015

Turkey To Require Additional Reporting On E-Commerce Operations

EA
Esin Attorney Partnership

Contributor

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Esin Attorney Partnership, a member firm of Baker & McKenzie International, has long been a leading provider of legal services in the Turkish market. We have a total of nearly 140 staff, including over 90 lawyers, serving some of the largest Turkish and multinational corporations. Our clients benefit from on-the-ground assistance that reflects a deep understanding of the country's legal, regulatory and commercial practices, while also having access to the full-service, international and foreign law advice of the world's leading global law firm. We help our clients capture and optimize opportunities in Turkey's dynamic market, including the key growth areas of mergers and acquisitions, infrastructure development, private equity and real estate. In addition, we are one of the few firms that can offer services in areas such as compliance, tax, employment, and competition law — vital for companies doing business in Turkey.
As part of efforts to strengthen its monitoring of e-commerce in Turkey, the Ministry of Finance's Revenue Administration published a draft General Communiqué on the Tax Procedure Law on its website on September 15 that, if adopted as expected, would require certain taxpayers to provide additional information on their e-commerce operations.
Turkey Tax

Recent development

As part of efforts to strengthen its monitoring of e-commerce in Turkey, the Ministry of Finance's Revenue Administration published a draft General Communiqué on the Tax Procedure Law on its website on September 15 that, if adopted as expected, would require certain taxpayers to provide additional information on their e-commerce operations.

Taxpayers affected

The groups that would be affected by these changes and the additional requirements are as follows:

Intermediary service providers: Providers of software, hardware or technical infrastructure via an intermediary service that acts as an agent for the performance of purchase, sale, rent or distribution of goods and services over the Internet would be required to provide the Revenue Administration with the domain names through which the intermediary service is provided, as well as the personal information of the seller. Additionally, the dates on which the intermediary services were provided, amounts paid, as well as transaction dates would also need to be reported.
 
Advertising services agencies: Agencies who provide their services over the Internet would be required to provide the name and Turkish identity or tax number of both the advertisers and Internet address owners, the Internet addresses of the published advertisements and the fee collected for the advertising service.
 
Banks: All banks would have additional reporting requirements for Internet purchases by their customers.
 
Cargo and logistics businesses: Such businesses would be required to provide the name and Turkish identity or tax number and address information of the shipper, the total number of deliveries, the total delivery amount, payment method, and the total payment regarding payments executed at the door.

Conclusion

While it will not enter into force until the date of its official publication, we expect that the communiqué will be adopted in its current form without substantial changes, taking effect from January 1, 2016. In the meantime, affected taxpayers should take steps to ensure that they will be able to comply with the additional reporting requirements.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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