Special Consumption Tax (Excise Duty) in Turkey

2065

Special Consumption Tax is an expenditure tax. This tax regulated by the Special Consumption Tax Law (No.4760).

Subject: The law has 4 lists. Goods in the Lists attached to the Special Consumption Tax Law are the subject of the tax. For goods in the Lists, Special Consumption Tax is charged only once.

In that lists there are 4 different product groups. These (special) products are subject to special consumption tax at different tax rates.

List I (Petroleum based products): Petroleum products, natural gas, lubricating oil, solvents and derivatives of solvents.

List II (Vehicles): Automobiles and other vehicles, motorcycles, planes, helicopters, yachts.

List III (Tobacco and beverages): Tobacco and tobacco products, alcoholic beverages and cola.

List IV (Luxury): Luxury products such as durable consumption goods, caviar, air conditioners, electrical heaters, cell phones, after shaves, computer related products, etc.

Rates: The tax base for Special Consumption Tax is the same as the Value Added Tax base. The products described in the lists above are charged different tax rates or lump-sum tax. For example, tax rate of air conditioners and durable consumption goods is 6.7% and tax rate of phones is 20%.

Taxpayers:  Taxpayers of the tax are different according to the lists.

List I: Manufacturers and importers of the petroleum products included in the list., 

List II:  Merchants of motor vehicles, importers for using or sellers through auction. 

List III:  Manufacturers, importers or sellers through auction of tobacco, alcoholic beverages and cola.

List IV: Manufacturers, importers or sellers through auction of luxury products included in the list.

Taxation Terms: Taxation terms are different according to the lists.

List I: 15 days period of the month. Twice a month. Tax will be paid during the 10 days after the taxation period.

List II: a) Every month (ordinary vehicles). Tax will be paid during the 15 days after the taxation period. b) Before the first selling (official registration required vehicles). Tax will be paid at the same time taxation term.

List III: Every month. Tax will be paid during the 15 days after the taxation period.

List III: Every month. Tax will be paid during the 15 days after the taxation period.

Tax Exceptions: Some transactions are not charged to the special consumption tax. These are;

-Exports: Exports of the all products in the lists.

- Diplomatic exception: Diplomatic purpose selling of the products in the List I, List II and List III.

- Other exceptions: Selling of some product to the military or national security agencies, public bodies, disabled people, and other transactions are excepted from the tax. 

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