Taxes in Türkiye, Part IV (Taxes on special items)
Excise tax is one of the types of indirect taxes in Turkey, which is applied on certain goods such as luxury goods, gas, vehicles and tobacco and alcoholic beverages. This tax is imposed in order to provide financial resources for the government and control the consumption of these goods. In this article, we will take a comprehensive look at special consumption tax in Turkey, its rates for different goods, how to calculate and pay it, and important points related to it. In this post, we will review the third part of taxes in Türkiye, so stay tuned. If you haven’t read the first part, the second part and the third part, click on each one.
Taxes in Türkiye, Part IV (Taxes on special items)
Taxes in Türkiye
The Turkish tax system includes various types of taxes such as income tax, corporate tax, value added tax, real estate tax and special taxes. Tax rates in Türkiye are different based on the type of tax and the specific conditions of each case.
Special consumption tax in Türkiye
Excise taxes in Turkey are applied to a wide range of goods, which are generally divided into the following categories:
Luxury goods: This category includes goods such as jewelry, expensive cosmetics, brand clothes, luxury furniture and home appliances, etc.
Gas: special consumption tax is applied on all types of natural gas, liquid gas and other petroleum products.
Vehicles: This tax applies to all new and used motor vehicles, including cars, motorcycles, trucks, etc.
Tobacco and alcoholic beverages: special consumption tax is applied on all types of cigarettes, tobacco, hookah and alcoholic beverages of different degrees.
Special consumption tax rate in Türkiye
Special consumption tax rates in Türkiye are different for different goods. In general, the rate of this tax is higher for luxury and non-essential goods than for essential and needed goods.
Calculation and payment of special consumption tax in Türkiye
Excise tax in Türkiye is calculated as a percentage of the sales price of goods. This tax is collected by the seller from the buyer for each taxable item and paid to the government.
Important points related to special consumption tax in Türkiye
The special consumption tax rate in Türkiye is determined and notified annually by the government.
Taxpayers of special expenses are obliged to register with the tax office and submit tax returns on time.
Failure to pay the special consumption tax on time will be subject to a fine.
Introducing Kargar Consulting and Investment Company
Kargar Consulting and Investment Company with more than 14 years of brilliant experience in the field of investment and purchase of property in North Cyprus, with 18 active branches in Iran, Turkey and North Cyprus, is ready to provide consulting and investment services to you dear ones.
Introducing Kargar Consulting and Investment Company
We at Kargar Company, with our experienced and expert team, will help you choose the best investment options in North Cyprus and we will do all the steps of buying a property for you, including obtaining permits, doing legal and administrative affairs, and accommodation.
For more information about special consumption tax in Turkey or investment services in North Cyprus, you can contact our experts at Kargar Investment and Consulting Company.
Special consumption tax rates for different goods
As mentioned in the previous section, the special consumption tax rate in Turkey is different for different goods. In the following, we present the rate of this tax for some important and widely used goods:
Luxury goods: The special consumption tax rate for luxury goods ranges from 10 to 60 percent. For example, the tax rate is 20% for jewelry, 30% for expensive cosmetics, 40% for branded clothes, and 50% for luxury furniture and home appliances.
Gas: The special tax rate for natural gas is 18% and for liquid gas is 20%.
Vehicles: The special consumption tax rate for new vehicles varies between 20% and 60% based on the size of the engine and the type of vehicle. For example, the tax rate is 20% for passenger cars with an engine volume of less than 1600 cc, 40% for passenger cars with an engine volume between 1600 to 2000 cc, and 60% for SUVs. The special tax rate for used vehicles varies between 10% and 40% based on the year of manufacture and mileage.
Tobacco and alcoholic beverages: The special tax rate for cigarettes and tobacco is 60%, for hookah 70%, and for alcoholic beverages with different degrees, it varies between 20% and 60%.
Calculation of special consumption tax
Special consumption tax is calculated as a percentage of the selling price of goods. To calculate this tax, follow the steps below:
Specify the selling price of the product excluding special consumption tax.
Check the special consumption tax rate for the desired product from the rate table or through the website of the Turkish Tax Office.
Multiply the special consumption tax rate by the sales price of the product excluding tax.
The product obtained will be equivalent to the special consumption tax payable for that item.
Special consumption tax is calculated as a percentage of the selling price of goods. To calculate this tax, follow the steps below:
Example:
Suppose the selling price of a passenger car with an engine capacity of 1800 cc is 200,000 Turkish Liras. The special tax rate for this car is 40%.
Calculation of special expenses tax:
200,000 liras (sale price) * 40% (tax rate) = 80,000 liras
Therefore, the special consumption tax payable for this car will be 80,000 lira.
Payment of special expenses tax
Special expenses tax in Türkiye can be paid in cash and credit.
Cash payment: Special consumption tax can be paid in cash to the tax office or through special ATM machines.
Credit payment: Taxpayers of special expenses can get more time to pay taxes from the tax office by providing a valid guarantee.
Important points about the payment of special consumption tax
Taxpayers of special expenses are obliged to keep documents related to the purchase and sale of taxable goods for 5 years.
In case of non-payment of special consumption tax by the due date, the taxpayer will be fined.
Taxpayers can refer to the website of the Turkish Tax Administration for more information on special consumption tax.
In the next part of this article, we will examine the exemptions and exceptions of the special consumption tax, the rules and regulations related to this tax, as well as the legal solutions to reduce or postpone its payment.
Exemptions and exceptions of special consumption tax
Some goods and services in Türkiye are exempt from special consumption tax. These exemptions are established in order to support domestic production, encourage exports and meet the basic needs of the people.
Some of the most important excise tax exemptions in Türkiye are:
Medicines and medical equipment: Medicines and medical equipment used in hospitals, medical centers and homes are exempt from special consumption tax.
Books and publications: Books, newspapers, magazines and other printed publications are exempt from special consumption tax.
Foodstuffs: Basic foodstuffs such as bread, rice, beans, dairy products and meat are exempted from special consumption tax.
Educational services: tuition fees of schools, universities and other educational institutions are exempted from special expenditure tax.
Public transport services: bus, metro, train and other public transport tickets are exempt from special consumption tax.
Laws and regulations related to special consumption tax
Laws and regulations related to special consumption tax in Türkiye are compiled and promulgated by the tax administration of this country. These rules and regulations include things like tax rates, how to calculate and pay taxes, exemptions and exceptions, crimes and punishments, and other things related to this tax.
Taxpayers of special expenses are obliged to comply with all laws and regulations related to this tax. Failure to comply with these rules and regulations can result in heavy fines and penalties for taxpayers.
Legal solutions to reduce or postpone the payment of tax for certain expenses
Taxpayers of special expenses can use some legal solutions to reduce or postpone the payment of this tax.
Some of these solutions are:
Use of exemptions and exceptions: Taxpayers should fully use the exemptions and exceptions of special consumption tax provided by law.
Conducting transactions in cash: In some cases, conducting transactions in cash can lead to the reduction or elimination of certain consumption taxes.
Use of alternative payment methods: Taxpayers can use alternative methods such as bonds or clearing instead of cash payment of certain expenses tax.
Legal solutions to reduce or postpone the payment of tax for certain expenses
Get advice from experts: Taxpayers can get advice from financial and tax experts to learn about legal solutions to reduce or postpone the payment of tax on certain expenses.
Conclusion
Excise tax in Turkey is one of the types of indirect taxes that are applied on specific goods such as luxury goods, gas, vehicles and tobacco and alcoholic beverages. The rate of this tax is different for different goods and taxpayers are obliged to pay it on time.
In this article, we reviewed the special consumption tax in Turkey, its rates for different goods, how to calculate and pay it, exemptions and exceptions, rules and regulations related to this tax, as well as legal solutions to reduce or postpone its payment.
Kargar Consulting and Investment Company with more than 14 years of brilliant experience in the field of investment and purchase of property in North Cyprus, with 18 active branches in Iran, Turkey and North Cyprus, is ready to provide consulting and investment services to you dear ones.
We hope this article was useful for you. In the following, we will answer some frequently asked questions.
