31.01.2023/27
Dolmuş Transportation Businesses Are Now Subject to Revenue-Based Taxation
Article 38 of the Value Added Tax Law No. 3065 stipulates that individuals whose commercial income is determined based on the business account method or whose professional income is determined based on a freelance income book and who belong to sectors and professions determined by the President may, upon request, calculate the value added tax (including VAT) on the consideration for taxable transactions, and pay this amount without associating it with the deductible value-added tax, using the rate determined by the President for the relevant sector or profession.
Based on this authority, with the Presidential Decision No. 32087 dated 28.01.2023, an amendment was made to the previous regulation for bus businesses under the Decision No. 718, and dolmuş (shared taxi) businesses were also included in the scope.
Accordingly, dolmuş businesses engaged in urban passenger transportation and generating all of their revenue from electronic fare collection systems (excluding those with a capital of 51% or more owned by municipalities, either directly or indirectly) will pay a tax of 1.5% on the revenue from their public transportation activities exclusively conducted within city borders.
In order to be subject to revenue-based taxation, taxpayers must exclusively engage in dolmuş and/or bus transportation activities with the specific characteristics mentioned. Carrying out these activities together does not prevent the application of revenue-based taxation. Taxpayers with other activities not falling under this scope cannot benefit from this application.
The regulation will come into effect on 01.01.2023.
You can access the relevant Presidential Decision here.
Best regards,
BİLGENER
