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Turkey: Draft Guidelines on Consumption Tax

(Mar. 2, 2015) It was reported on February 27, 2015, that Turkey’s Revenue Administration has published draft guidelines on excise taxes. (René Offermanns, Turkey: Draft Guidelines on Excise Duty Published, TAX NEWS SERVICE (Feb. 27, 2015), International Bureau of Fiscal Documentation online subscription database; Özel Tüketim Vergisi (I) Sayili Liste Uygulama Genel TebligÂÂ?i [General Guidelines on Application of List I of the Special Excise Tax], Revenue Administration website (last visited Feb. 27, 2015).)

The guidelines are based on the list of goods set forth in Appendix I of the Special Excise Tax Law (Özel Tüketim Vergisi Kanunu, Law No. 4760 (June 6, 2002, as last amended by Law No. 6552 of Sept. 11, 2014), MEVZUAT; Offermanns, supra.) They apply to imported petroleum products, natural gas, and biodiesel, subdivided into category A, which covers, e.g., general gasoline, diesel, jet fuel, and fuel oil products; liquefied petroleum gas; and oil derivatives; and category B, which covers, e.g., solvents and their derivatives and lubricants. (Offermanns, supra; Özel Tüketim Vergisi (I) Sayili Liste Uygulama Genel TebligÂÂ?i, supra.)

The Guidelines also “provide information on taxable events, taxpayer liabilities, the scope of exemptions, possibilities for tax deferral, submission of forms, and the tax deduction procedure for excise taxes paid for the manufacture of other specified goods.” (Offermanns, supra.) They will enter into force as of the beginning of the month following the date of their official publication, but the provisions applicable to fuel oil will be effective as of July 1, 2015. (Id.)