Accommodation Tax Implementation General Communiqué Published
On 5.12.2019, the Digital Services Tax and Amendments to Certain Laws and the Decree No. 375 were enacted through Law No. 7194, which included the introduction of the accommodation tax in the revised Article 34 of the Expenditure Taxes Law.
The implementation of the accommodation tax was clarified through the General Communique on Accommodation Tax published in the Official Gazette on 14.12.2022 (Official Gazette No. 32043), providing the details and procedures for its application.
The regulations outlined in the Communique are summarized below:
1. Subject of the Tax
The subject of the accommodation tax includes overnight stays provided in accommodation facilities such as hotels, motels, holiday resorts, guesthouses, aparthotels, hostels, campsites, mountain houses, and plateau houses, as well as all other services provided within the facility in conjunction with the overnight stay service (such as food, drink, activities, entertainment, and use of facilities like pools, sports, and thermal areas). The provision of accommodation services in wellness centers, entertainment centers, and similar facilities does not affect the taxation.
Accordingly:
1) Accommodation facilities covered by the regulations such as hotels, holiday villages, boutique hotels, private accommodations, motels, guesthouses, and aparthotels,
2) Health facilities that offer wellness services, including thermal facilities with accommodation,
3) Rural tourism facilities including farmhouses, village houses, mountain houses, campsites, and recreation areas intended for overnight stays,
4) Other facilities that offer overnight services, regardless of whether they are registered as tourism establishments or have a workplace operating license,
The overnight services provided at these facilities and any additional services sold along with them are subject to the accommodation tax.
Services provided in facilities that do not offer overnight stays (such as rest areas) are not subject to the tax. Additionally, overnight services provided by social service organizations under the Social Services Law for individuals in need of care or assistance are excluded from the scope of the tax.
2. Other Services Provided Along with the Overnight Stay
All services provided alongside the overnight stay (such as food, drink, activities, entertainment, pool use, etc.) are subject to the accommodation tax. These services are taxed if they are marketed and sold together as part of a concept. Even if these services are separately priced and paid for by the guest, they are still subject to the tax.
Services like weddings, conferences, cocktails, seminars, and other events, unless provided with accommodation, are not subject to the accommodation tax. However, if accommodation is included as part of these services, only the accommodation portion will be taxed.
3. Taxable Event
The taxable event for the accommodation tax occurs when the service is provided. The timing of the payment (before, after, or not at all) does not affect the taxable event.
If an invoice or similar document is issued before the service is provided, the taxable event does not occur at that time.
4. Taxpayer
The taxpayer for the accommodation tax is the entity that provides the services subject to taxation. The taxpayer is the operator of the accommodation facility, regardless of whether the facility is publicly or privately owned or operated by natural or legal persons.
The taxpayer’s liability begins when the facility is made ready for operation, whether in full or in part, and continues from the time the activity begins.
5. Exemptions
According to Article 34, paragraph 7(a) of the Law, services provided in student dormitories, hostels, and camps are exempt from the tax.
In addition, services provided to foreign diplomatic missions, consulates, and their personnel with diplomatic privileges, as well as international organizations and their personnel granted tax immunity by international agreements, are also exempt.
6. Tax Base and Rate
The tax base for the accommodation tax is the total amount of money or value received or owed in return for the services provided, excluding VAT.
Accordingly, the accommodation tax base does not include VAT. However, any fees, price differences, currency differences, interest, premiums, or similar income related to the accommodation services are included in the tax base.
If payment is made in foreign currency, it must be converted to Turkish Lira using the exchange rate published by the Central Bank of Turkey on the date the taxable event occurs.
The accommodation tax is 2% of the total amount received for the accommodation services.
The tax must be shown separately on invoices or similar documents. No discounts are allowed on this tax, and it is not included in the VAT base.
7. Tax Period, Declaration, and Payment
According to Article 34, paragraph 8 of the Law, the tax period for accommodation tax is one-month periods of the calendar year.
Accommodation tax for each period must be declared by the 26th of the following month, either to the tax office responsible for VAT (for VAT taxpayers) or to the local tax office where the facility is located (for those not liable for VAT). Declarations may be made electronically.
The accommodation tax must be paid by the declaration deadline.
The tax is assessed on behalf of the taxpayers, who are either real or legal persons. If the taxpayer is a partnership, one of the partners will be responsible for paying the tax.
For more details, please refer to the relevant Communique: [Link to the Official Gazette](https://www.resmigazete.gov.tr/eskiler/2022/12/20221214-6.htm).
Best regards,
BİLGENER
