Taxi bus operators are included in the scope of revenue-based taxation
Article 38 of the Value Added Tax Law No. 3065 stipulates that those whose commercial income is determined according to the business account method, as well as those whose professional income is determined according to the freelance profession income book, and who fall under the sectors and professions determined by the President, may request to pay the VAT (including VAT) on the amount representing taxable transactions by applying the rate determined for the relevant sector or profession, without relating it to the deductible VAT.
Based on this authority, with the Presidential Decree No. 32087 dated 28.01.2023, an amendment was made to the previous regulation for bus operations in Decree No. 718, and minibus operations have also been included in the scope.
Accordingly, minibus businesses engaged in urban passenger transport activities, whose entire revenue is obtained through electronic fare collection systems, (excluding companies whose capital is 51% or more owned by municipalities, directly or indirectly) will pay a tax rate of 1.5% on the revenue from their mass transportation activities conducted exclusively within the province borders.
To be taxed under the revenue-based taxation method, taxpayers must exclusively engage in minibus and/or bus operations with the specified characteristics. Conducting these activities together does not prevent revenue-based taxation. However, taxpayers who engage in other activities outside the scope of this regulation cannot benefit from this application.
This regulation will come into force on 01.01.2023.
You can access the related Presidential Decree here.
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BİLGENER
