TAX NEWS NO: 2019/6
Subject: New VAT reporting obligations for nonresident businesses supplying e-services to Turkish taxable persons (B2B sales).
Through On April 1, 2019, the Turkish tax authorities announced new VAT reporting obligations for nonresident businesses supplying e-services to Turkish taxable persons (B2B sales).
1- New VAT reporting obligations for B2B e-services as of January 1, 2019
Non-resident providers of e-services have now the obligation to provide information on all B2B sales of e-services in xml format. This information should be uploaded on the Turkish tax administration’s website via the following link https://digitalservice.gib.gov.tr/.
These new VAT obligations would have a retroactive effect as from January 1, 2019.
The intention of the Turkish tax authorities is to identify the B2B cross-border sales of e-services and check whether the local recipient of these services have properly self-assessed VAT in Turkey.
Non-resident businesses supplying e-services to private customers (B2C sales) remain liable to account for VAT on these sales. The tax calculation and submission procedures remain the same for these B2C transactions.
2- Information to be provided by non-resident suppliers of e-services
The following information should be reported in xml format by the non-resident suppliers of B2B e-services.
(i) Mandatory fields
- Name / trade name of the Turkish taxable person. XML name: “nameSurnameTradeName”
- Currency. XML name: "currencyOfPayment"
- Service price. XML name: “priceOfService"
- Payment method. XML name: “paymentMethod"
- Invoice date. XML name: "invoiceDate"
- Invoice number. XML name: "invoiceNumber".
(ii) Non-mandatory/optional fields
Please find attached a template of xml document to be uploaded.
The list of B2B e-services must be submitted with the VAT returns which are due on a monthly basis.
3- Penalty for non-compliance
It seems that no penalties would be due in case of late submission. However, tax authorities may impose special irregularity penalties in case of non-filing according to the Tax Procedure Law no 213.
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