The Accommodation Tax in Türkiye Started to Be Applied on January 1, 2023

Law No. 7338 on the Amendment of the Tax Procedure Law and Certain Laws published in the Official Gazette dated December 10, 2021, postponed the execution of the accommodation tax to January 1, 2023, due to the COVID-19 outbreak. Although there was an expectation that this period would be extended for another year, the Treasury and Finance Ministry determined the procedures and principles of the accommodation tax by the General Communique on Accommodation Tax Implementation published in the Official Gazette No. 32043, dated December 14, 2022 ("Communique").

According to the Communique, the basic principles regarding the accommodation tax are as follows:

• The accommodation tax is effective as of January 1, 2023.
• Accommodation tax applies to overnight accommodation services offered at accommodation facilities and any additional services provided during the stay. This includes any income generated from price differences, exchange rate differences, interest, premiums, or any other benefits or services with similar names.
• The taxpayer of the accommodation tax is those who provide accommodation services in the specified facilities.
• Sales of services to travel agencies by accommodation facilities, as defined in the Travel Agencies Regulation, are not subject to tax for either the seller or the accommodation facility until the accommodation occurs.
• The rate of accommodation tax is 2%.
• The accommodation tax rate needs to be shown in receipts separately and cannot be included in the VAT. Companies providing accommodation services cannot increase or decrease the tax rate.
• If the accommodation fee is in foreign currency, it will be converted to Turkish Lira using the foreign exchange buying rate of the Central Bank of the Republic of Türkiye on the date of the occurrence of the taxable event.
• The accommodation tax is due monthly and must be reported to the relevant tax office by the twenty-sixth of the month following the taxation period.
• If the facilities provide other services such as transportation, guidance, and excursions in addition to the accommodation services, the accommodation tax will be calculated only on the accommodation services, not other services, provided that the content and the number of other services are indicated in invoices.