16.12.2022/78
Accommodation Tax Implementation General Communiqué Published
With Article 9 of Law No. 7194, published on December 5, 2019, regarding Digital Services Tax and Amendments to Certain Laws and Decrees, the 34th article of the Law on Expenditure Taxes was amended to introduce an accommodation tax.
The Accommodation Tax Implementation General Communiqué, published in the Official Gazette No. 32043 on December 14, 2022, provides explanations regarding the implementation of the tax and sets out the procedures and principles.
The regulations in the communiqué are summarized below:
1. Subject of the Tax
The subject of the accommodation tax includes overnight services provided at accommodation establishments such as hotels, motels, holiday resorts, guesthouses, apart-hotels, hostels, campsites, mountain houses, and summer houses, as well as other services provided within the accommodation establishment in connection with the overnight stay (such as food, drink, activities, entertainment services, and the use of pools, sports, thermal areas, etc.). The fact that the overnight service is provided within health centers or entertainment venues does not affect the taxation.
Accordingly:
1) Accommodation facilities as specified in the “Tourism Facility Standards” Regulation, which was enacted with Presidential Decree No. 1134 on May 31, 2019, such as:
• Hotels, holiday resorts, boutique hotels, special accommodation facilities, motels, guesthouses, and apart-hotels within accommodation establishments,
• Health facilities including wellness centers and thermal establishments with accommodation services,
• Rural tourism facilities such as farmhouses, village houses, mountain houses, campsites, and accommodation-oriented picnic areas,
• Other types of facilities (tourism complexes, vacation centers, entertainment centers, personnel training facilities, private facilities, etc.) that also provide overnight services,
2) Any establishment providing accommodation for employees in public or private sector premises, except for dormitories and those designated as residences, such as guesthouses, inns, rest facilities, and camps,
3) Hotels operating in accordance with the relevant regulations,
4) Any other facility providing overnight services, regardless of whether it holds a tourism business license and/or a workplace opening/operating permit, is subject to this tax.
Services provided at facilities that do not offer any overnight services, such as rest stops, are not subject to the tax.
Overnight services provided by social service organizations defined in Article 3, paragraph 1(f) of Law No. 2828, which cater to individuals in need of care, protection, and assistance, are not subject to the tax.
2. Other Services Provided Along with Overnight Services
All other services provided within the accommodation facility, such as food, drink, activities, entertainment services, and the use of pools, sports areas, thermal facilities, and similar, which are sold together with the overnight service, are subject to the accommodation tax. Therefore, services marketed and/or sold as part of a package (e.g., room + breakfast, half board, full board, all-inclusive, ultra-all-inclusive) along with the overnight service are taxable.
Additionally, regardless of the type or quality of the accommodation facility, if any service is regularly offered with the overnight service, it is subject to the tax even if priced separately and paid for separately by the guest.
When determining whether the services provided by the accommodation facility are part of the overnight service, factors such as how the services are advertised, reserved, and sold, whether they are part of a predefined concept, and whether overnight stays are possible without using other services, are considered. The accommodation facility must keep and provide upon request documentation proving the scope of the services and the package in which the guest is receiving those services (e.g., advertisements, contracts, offers, reservations).
Organizational services, such as weddings, meetings, conferences, and seminars, provided by accommodation facilities are not subject to the tax unless the accommodation service is included. If they are included in the package, the accommodation tax will only apply to the overnight service, and the relevant organizational service will be clearly shown separately on the invoice.
3. Occurrence of the Tax Event
The tax event for accommodation tax occurs when services within the scope of the tax are provided.
Whether all or part of the payment is made before or after the service is provided, or not paid at all, does not affect the occurrence of the tax event.
If an invoice or similar document is issued before the service is provided, the tax event does not occur at that time.
4. Taxpayer
The taxpayer for the accommodation tax is the entity providing the services within the scope of the tax.
Therefore, the taxpayer is the entity that operates the accommodation facility where the accommodation services are provided, regardless of whether it owns the facility, or whether it is operated by a public or private sector, real or legal person.
The tax obligation arises when the accommodation facility is fully or partially ready for operation.
5. Exemptions
According to Article 34, paragraph 7(a) of the Law, services provided to students at student dormitories, boarding houses, and camps are exempt from the tax.
According to paragraph 7(b), services provided to foreign diplomatic missions, consulates, their diplomatic personnel, and international organizations and their personnel who are granted tax exemption under international agreements are also exempt.
6. Tax Base and Rate
According to Article 34, paragraph 4 of the Law, the tax base is the total of any money, goods, and other benefits (excluding VAT) received or charged in exchange for the services provided.
VAT is not included in the accommodation tax base.
Additional payments such as interest, exchange rates, and premiums related to the accommodation service are also included in the tax base.
If the payment is made in foreign currency, it is converted into Turkish lira based on the exchange rate published by the Central Bank of Turkey on the date the tax event occurs.
If the accommodation service is sold by an agency with the tax included, and this is verified to the accommodation facility, the tax is shown on the invoice from the facility to the agency.
The accommodation tax rate is 2% as per Article 34, paragraph 5.
According to paragraph 6, the accommodation tax must be shown separately on invoices and similar documents. No discounts can be made on this tax, and it is not included in the VAT base.
7. Tax Period, Declaration, and Payment
According to Article 34, paragraph 8, the tax period is one-month periods within the calendar year.
The accommodation tax for each tax period must be declared by the 26th day of the following month to the tax office responsible for VAT or, for those not liable for VAT, to the local tax office of the accommodation facility. Declarations may be submitted electronically.
The tax must be paid within the declaration period.
The accommodation tax is assessed on behalf of the taxpayers, whether real or legal persons.
If the taxpayer is a joint venture, one of the partners will be held liable for the tax.
You can access the full communiqué here.
Sincerely,
BİLGENER
