Page 10 - EY_VG_Ocak_2023_v2

Vergide Gündem
English Translation

New tax for new year; “Accommodation Tax”

“Accommodation Tax” is introduced applicable as of January 1. In fact, it was
accepted by the General Assembly of tfhe Grand National Assembly of Turkey on
December 5, 2019 (with law number 7194) and published in the Official Gazette
two days later. Although the law stipulates that the accommodation tax will enter
into force on April 1, 2020, the implementation period of this regulation has been
extended several times. The effective date of the last extension has been established
as January 1, 2023.

Overnight services

Overnight services provided in accommodation facilities such as hotels, motels,
holiday villages, pensions, apart hotels, guesthouses, camping, chalets, highland
houses are the subject of this tax. However, not only accommodation services,
but also all other services offered within the accommodation facility by being sold
together with this service are subject to tax. For example, service fees such as food,
beverage, activity, entertainment services and the use of pool, sports, thermal and
similar areas are also subject to accommodation tax, provided that they are sold
together with the accommodation service.

Tax generating event

The tax generating event in the accommodation tax occurs with the provision of
services that fall under the subject of the tax. The fact that some or all of the price is
collected before or after the service is rendered, or not collected at all, has no effect
on the tax generating event. Since the tax arises during the provision of the service,
the tax is not calculated if an invoice or similar documents are issued before the
service is provided.

Tax base

“Base” means the amount on which tax is calculated. The base of the
accommodation tax is the sum of the benefits, services and values that can be
represented by money, provided in money, goods and other forms of money received
or owed for these services in return for the services falling under the subject of the
tax. VAT is not included in the tax base. In other words, the accommodation tax is
calculated over the service fee excluding VAT.
Various incomes such as maturity difference, price difference, foreign exchange
difference, interest and premium related to the accommodation services offered
should also be included in the assessment.
Tax rate

Tax rate is established as 2%. Such tax is required to be separately demonstrated on
the invoice based of service fee excluding VAT.

10 January 2023