Dec 27 2017

Turkey hoping to turn tech giants into taxpayers

The Turkish Finance Ministry is unveiling new measures to collect value added tax (VAT) from online retailers including Apple, Google, Amazon and eBay, pro-government Akşam newspaper said.

Under proposed regulations, Turkish banks will have to disclose what payments are being made to the retailers for products and services, with companies being charged VAT accordingly.

If the online retailers refuse to pay, they will be subject to legal proceedings under debt collection laws, Akşam said.

“These companies will be told ‘You are now Turkish Republic Finance Ministry VAT taxpayers’,” the newspaper added.

If the scheme works, and is not subjected to legal challenges by these companies on the basis of where these transactions “occur,” it could prove a model to other states looking to collect tax revenue from elusive internet retailers.

 

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