Accommodation Tax in Turkey
Legal Basis
Accommodation Tax in Turkey is regulated in Article 9 of “Law No.7194 on Making Amendments in Digital Service Tax and Certain Laws and Decree-Law No. 375” published in the Official Gazette dated December 7, 2019 and numbered 30971.
Article 9 of the Law No. 7194 and the abolished title of Second Section of the Second Part of the Law No. 6802 are regulated as “Accommodation Tax” and is regulated again with abolished Article 34.
Who Will Pay Accommodation Tax?
Accommodation facilities such as hotel, motel, holiday village, pension, apart hotel, guest house, camping, mountain hostel, mountain house and other services provided in accommodation facilities along with overnight stay service (eating, drinking, activity, entertainment services and pool, sports, using thermal and similar activities) are subject to accommodation tax.
Providing overnight stay within facilities such as fitness (health) facilities and entertainment centers does not affect taxation.
The taxpayers of the accommodation tax are the enterprises that provide the services mentioned above.
On What Amount is Accommodation Tax Calculated?
The base of the accommodation tax is the sum of the benefits, services and values presented as money, goods and other ways that are received or borrowed for these services, regardless of value added tax, in return for the services subject to the tax.
What is the Rate of Accommodation Tax?
- The rate of accommodation tax is 2%. However, it will be applied as 1% until 31.12.2020. (Pursuant to Article 42 of Law No. 7194 and provisional Article 3 added to Law No. 6802)
- The President of the Republic of Turkey is authorized to double this rate or to reduce by half, and to determine different rates within these limits.
Will Accommodation Tax also be shown on the invoice?
Accommodation tax is also shown in invoices and similar documents issued by accommodation facilities. This tax cannot be deducted under any name.
Will VAT also be calculated on Accommodation Tax?
This tax is not included in the value-added tax base.
Who and Which Services will not be subject to Accommodation Tax?
The following services are exempt from accommodation tax:
a) Services provided to students in dormitories, hostels and camps.
b) Services provided to diplomatic representatives of foreign governments in Turkey, consulates and members having diplomatic rights, international organizations and members granted tax exemption pursuant to international agreements, provided that these services are offered mutually.
At what intervals will the Accommodation Tax Declaration be issued and paid?
- The taxation period for accommodation tax is one-month periods of the calendar year in which it operates.
- The accommodation tax for each taxation period is declared and paid within the same period to the tax office to which it is affiliated in terms of value added tax (to the local tax office where the accommodation facility, which has no value-added tax liability, is located), until the evening of the twenty-sixth day of the month following the taxation period.
When will the Accommodation Tax start?
It shall enter into force on April 1, 2020 in accordance with Article 9, which regulates the Accommodation Tax in paragraph (b) of Article 54 of the Law No.7194. Accordingly, the Accommodation Tax Declaration for April 2020 will be submitted until May 26, 2020 and will be paid within the same period.
Sample-1
1- Total revenue of Akdeniz Turizm Otelcilik A.Ş. for the services in July 2020, such as overnight service with other services such as food, drinking, activity, entertainment services and pool, sports, using thermal and similar activities offered in the accommodation facility is TRY 1 Million + VAT.
The information regarding the total sales invoices issued by Akdeniz Turizm Otelcilik A.Ş. in July 2020 is given below.
| Overnight & other services | : TRY 1.000.000 |
| Accommodation Tax 1% | : TRY 10.000 |
| VAT 8% | : TRY 80.000 |
| TOTAL | : TRY 1.090.000 |
– VAT has been taken as 8%.
– Accommodation Tax is calculated over VAT Excluded Amount.
– Accommodation Tax is shown separately in Invoices.
– Accommodation Tax amounted TRY 10.000 will be declared and paid within the same period by Akdeniz Turizm Otelcilik A.Ş. until 26.08.2020.
Sample-2
1- Total revenue of Ege Tatil Köyü A.Ş. for the services in August 2021, such as overnight service with other services such as food, drinking, activity, entertainment services and pool, sports, using thermal and similar activities offered in the accommodation facility is TRY 2 Million + VAT.
The information regarding the total sales invoices issued by Ege Tatil Köyü A.Ş. in August 2021 is given below.
| Overnight & other services | : TRY 2.000.000 |
| Accommodation Tax 1% | : TRY 40.000 |
| VAT 8% | : TRY 160.000 |
| TOTAL | : TRY 2.200.000 |
– VAT has been taken as 8%.
– Accommodation Tax is calculated over VAT Excluded Amount.
– Accommodation Tax is shown separately in Invoices.
– Accommodation Tax amounted TRY 40.000 will be declared and paid within the same period by Ege Tatil Köyü A.Ş. until 26.09.2021.
SUMMARY
1- Accommodation Tax in Turkey is regulated in Article 9 of Law No.7194 published in the Official Gazette dated December 7, 2019 and numbered 30971.
2- Accommodation facilities such as hotel, motel, holiday village, pension, apart hotel, guest house, camping, mountain hostel, mountain house and other services provided in accommodation facilities along with overnight stay service (eating, drinking, activity, entertainment services and pool, sports, using thermal and similar activities) are subject to accommodation tax.
Providing overnight stay within facilities such as fitness (health) facilities and entertainment centers does not affect taxation.
3- The base of the accommodation tax is the sum of the benefits, services and values presented as money, goods and other ways that are received or borrowed for these services, regardless of value added tax, in return for the services subject to the tax.
4- It shall enter into force on April 1, 2020. The Accommodation Tax Declaration for April 2020 will be submitted until May 26, 2020 and will be paid within the same period.
5- Accommodation Tax Declaration will be submitted monthly.
Prepared by
Ali KARAKUŞ
December 7, 2019
Istanbul
Source: 1-Law No.7194 on Making Amendments in Digital Service Tax and Certain Laws and Decree-Law No. 375” – Official Gazette dated December 7, 2019 and numbered 30971.
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