Turkish Commercial Advertising Services: VAT Withholding and Refunds

• Commercial advertising services are subject to partial withholding under the Value Added Tax (VAT) Law.
• The withholding rate is 3/10 of the VAT amount.
• Withholding is mandatory for buyers of commercial advertising services.
• Withholding applies to advertising services purchased by advertisers to promote a good or service.
• This includes advertising on television, radio, newspapers, magazines, digital platforms, and outdoor advertising.
• It also includes the preparation, design, and planning of advertising content, and advertising consulting services.
• Withholding is also applicable to services received through advertising agencies.
• There is a threshold for withholding, which is the invoice issuance limit set annually by the Tax Procedure Law.
• If the transaction amount falls below the threshold, withholding is not applied.
• If the transaction amount exceeds the threshold, withholding is mandatory on the entire amount.
• If multiple invoices are issued to avoid withholding, the tax authorities will determine if the total amount exceeds the threshold.

Source: alomaliye.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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