What is special consumption tax ?
(Law No. 4760, Official Gazette No. 24783 dated 12.06.2002)
2.1.General Explanations
Special consumption tax (SCT) is levied only for once at one stage of consumption process of the goods within the scope of four lists annexed to the SCT Law No. 4760.
The goods subject to tax are indicated as tariff codes generating from Turkish Customs Tariff Nomenclature (TCTN). TCTN is incompliance with the Combined Nomenclature which is the international classification system for goods.
There are mainly four product groups that are subject to SCT at different tax amounts or rates.
List (I) is related to petroleum products, natural gas, lubricating oil, solvents and derivatives of solvents,
List (II) is related to land, air and sea vehicles (cars and other vehicles, motorcycles, planes, helicopters, yachts etc.),
List (III) is related to alcoholic beverages and cola soda pops, cigarettes and other tobacco products,
List (IV) is related to other consumption goods (caviar, furs, mobile phones, white goods and other electrical household machines etc.).
2.2.Taxpayers of the SCT
Taxpayers vary by list and transaction as follows:
For List (I), manufacturers including refineries or importers of the petroleum products,
For List (II), traders of motor vehicles, importers for their use (not for selling) or sellers of untaxed vehicles through auction,
For List III, manufacturers and importers of the goods or sellers of untaxed goods through auction,
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes.
For List IV, manufacturers and importers of the goods or sellers of untaxed goods through auction. 2.3.Taxation of the Goods in List (I) Annexed to the SCT Law
The List (I) annexed to the Law consists of two tables: Table (A) and Table (B).
Table (A) is composed of petrol, diesel, fuel oil, natural gas and LPG while solvents, thinner and mineral oils (lubricating oils) are within the scope of Table (B).
Coal and coke, and electricity are not within the scope of the Law.
2.3.1.Taxable Event for Goods in List (I)
For the goods laid down in List (I) taxable event does not occur at the time of importation but at the domestic delivery of the goods.
Delivery means the transfer to recipient or to those acting on behalf of him, the right of disposition of property by the owner or by those acting on behalf of him.
Importation means the entry of goods subject to excise duty into the customs territory of the Republic of Turkey.
On the other hand, at the stage of importation, guarantee is required for corresponding duty that becomes payable in Turkey.
2.3.2.Exemptions
Exemptions for the goods within List (I) are:
Exportation exemption,
Diplomatic exemptions,
Supply of goods destined for export,
Energy products delivered to the armed forces,
Energy products used for petroleum exploration and production activities,
Free of charge delivery of the goods which have been disposed according to the Customs Law to the public institutions in case of disasters, infectious diseases and similar circumstances,
Exemption on diesel for the vehicles leaving Turkey for export.
2.3.3.Tax Amount
Tax shall be collected according to the amounts stated in List (I) annexed to the Law.
The specific excise duty amounts determined for goods in the List No: (I) can be defined with kilogram, liter, meter cube, standard meter cube, kilo calorie, their sub and over units and if necessary can be defined as containers, wraps or units considering their size.
The Council of Ministers is authorized to change the amounts within the limits indicated in the Law.
2.3.4.Declaration, Assessment and Payment of Duty SCT is assessed and collected upon declaration of taxpayers
There are two taxation periods in a month. The first taxation period is the first 15 days of each
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes month and the second taxation period is the remaining part of the month.
Tax return is submitted electronically to the tax office by the end of 10th day following the end of the taxation periods and the tax shall be paid within periods of submission of the return.
2.3.5.Deferment and Cancellation
The SCT of the good within the scope of List (I) delivered to the exporters for the purpose of exportation is assessed, accrued and then deferred by related tax office upon the request of taxpayers, provided that tax is not collected by these taxpayers from exporters.
Deferred tax is then cancelled when the goods have been exported within 3 months as of the first day of the month following the date of delivery to the exporter. 2.3.6.Tax Deduction If any good subject to SCT within List (I) is used in manufacturing of other goods in the same list, tax paid shall be deducted from due tax.
2.4.Taxation of the Goods in List (II) Annexed to the SCT Law
Vehicles like haulers for half-trailers, cars and vehicles designed for transport of persons, vehicles designed for transport of goods, vehicles for special purposes, motorcycles, helicopters, planes, ships, yachts, vessels for entertainment and sport are within the scope of List (II) annexed to the Law. Components and part of these goods are not subject to special consumption tax.
For the purposes of taxation, vehicles are classified according to necessity of entry and registration. Land, air and sea vehicles are recorded and registered by traffic registration institutions, General Directorate of Civil Aviation and municipalities or port authorities respectively.
2.4.1.Taxable Event for Vehicles Subject to Entry and Registration
First acquisition is the taxable event for vehicles subject to entry and registration such as cars, buses, trucks, motorcycles, airplanes, helicopters, ships, yachts etc.
In terms of special consumption tax, first acquisition means, in respect of the vehicles which have not already been recorded and registered in Turkey, the importation, acquisition by auction, acquisition from the merchants of motor vehicles or being started to be used or capitalized by merchants of motor vehicles or registered in the name of them.
2.4.2.Taxable Event for Vehicles Not Subject to Entry and Registration
Taxable event occurs at the time of their delivery, importation or public auction.
Delivery means the transfer to recipient or to those acting on behalf of him, the right of disposition of property by the owner or by those acting on behalf of him.
Importation means the entry of goods subject to excise duty into the customs territory of the Republic of Turkey.
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes.
2.4.3.Exemptions
Exemptions for the goods within List (II) are:
Exportation exemption,
Diplomatic exemption,
Importation exemption (only for the goods which are free of customs duty),
Exemption for the goods subject to regimes (transit, customs warehouse, inward processing, customs control, free zones and provisional warehousing) generating from the Customs Law No. 4458,
Exemption on the first acquisition of certain motor vehicles by disabled persons,
Exemption on the first acquisition of planes and helicopters by Turkish Aeronautical Association,
Exemption on the first acquisition of all vehicles in List (II) by Headquarter of Prime Ministry,
Exemption on the first acquisition of 8701.20, 87.04, 87.05 and 87.09 Combined Nomenclature (CN) coded vehicles within List (II) for the purpose of petroleum exploration.
2.4.4.Deferment and Cancellation
The excise duty of the vehicles delivered to the exporters for the purpose of exportation is assessed, accrued and then deferred by related tax office upon the request of taxpayers provided that the duty are not collected by these taxpayers from exporters.
Deferred duty is then cancelled when the vehicles have been exported within 3 months as of the first day of the month following the date of delivery to the exporter.
2.4.5.Tax Deduction
If any vehicle subject to SCT within List (II) is used in manufacturing of other vehicles in the same list, tax paid shall be deducted from due tax. 2.4.6.Rates
Tax shall be collected according to the proportional rates stated in List (II) annexed to the Law. The Council of Ministers is authorized to change the rates and/or amounts within the limits indicated in the Law.
2.4.7.Declaration, Assessment and Payment of Duty
SCT is assessed and collected upon declaration of taxpayers.
Tax return for the vehicles subject to entry and registration is submitted electronically to the tax office just before the end of first acquisition and tax is paid on the same day.
On the other hand, tax return for the vehicles not subject to entry and registration tax is submitted electronically to the tax office by the 15th day of the month following the end of the month. Tax is paid within the period of submission.
2.5.Taxation of the Goods in List (III)
Annexed to the SCT Law
The List (III) annexed to the Law consists of two tables: Table (A) and Table (B).
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes.
Table (A) is composed of cola soda pops and alcoholic beverages while cigarettes and other tobacco products are within the scope of Table (B).
2.5.1.Taxable Event for the Goods in List (III)
Taxable event occurs at the time of their delivery by their manufacturers, importation or sale at public auction before tax is applied.
Delivery means the transfer to recipient or to those acting on behalf of him, the right of disposition of property by the owner or by those acting on behalf of him.
Importation means the entry of goods subject to excise duty into the customs territory of the Republic of Turkey.
2.5.2.Exemptions
Exemptions for the goods within List (III) are:
Exportation exemption,
Diplomatic exemption,
Importation exemption (only for the goods which are free of Customs Duty),
Exemption for the goods subject to regimes (transit, customs warehouse, inward processing, customs control, free zones and provisional warehousing) generating from the Customs Law No. 4458.
2.5.3.Deferment and Cancellation
The excise duty of the vehicles delivered to the exporters for the purpose of exportation is assessed, accrued and then deferred by related tax office upon the request of taxpayers provided that the duty are not collected by these taxpayers from exporters.
Deferred duty is then cancelled when the vehicles have been exported within 3 months as of the first day of the month following the date of delivery to the exporter. 2.5.4.Tax Deduction
If any good subject to SCT within List (III) is used in manufacturing of other goods in the same list, tax paid shall be deducted from due tax.
2.5.5.Rate or Amount
Tax shall be collected according to the rates and/or amounts stated in List (III) annexed to the Law. The Council of Ministers is authorized to change the rates and/or amounts within the limits indicated in the Law.
Proportional taxation method is used in calculating SCT on cigarettes and other tobacco products. Nevertheless, tax on cigarettes and other tobacco products calculated on proportional basis cannot be less than the tax amount calculated according to minimum specific tax amounts.
Minimum specific tax amount is levied for each piece of cigarette in a packet and per gram of other tobacco products.
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes.
Specific tax amount per one packet of cigarettes and per 50 gram of other tobacco products is finally calculated in order to determine total special consumption tax.
For alcoholic beverages, proportional taxation is the principal method but tax calculated cannot be less than the tax amount calculated according to minimum specific tax amounts. In practice, tax on beer is calculated by the application of both proportional and specific method taking account of alcohol degree in one liter of product, providing that the proportional calculation cannot be less than the tax amount calculated according to minimum specific tax amounts. SCT on other goods, except beer, is calculated solely on the basis of minimum tax amounts, because of the fact that the proportional rates are determined as zero (0).
Minimum specific tax amount levied on alcoholic beverages varies by goods such as considering the degree of alcohol in one liter of the product (beer or wine, etc), or liter of pure alcohol contained in the product (whisky, vodka etc.).
Tax on cola soda pops is calculated on proportional basis without any minimum specific tax amount.
2.5.6.Tax Base
Tax base for cigarettes and other tobacco products is retail selling price of these goods to final customers including VAT. Tax base for importation of cigarettes and tobacco products shall also be the retail selling price of these goods.
Tax base for alcoholic beverages, cola and soda pops is VAT tax base excluding SCT.
2.5.7.Declaration, Assessment and Payment of Duty
SCT is assessed and collected upon declaration of taxpayers.
Tax return is submitted electronically to the tax office until the 15th day of the month following the end of the taxation period and the tax shall be paid within period of submission of the tax return.
2.6.Taxation of the Goods in List (IV) Annexed to the SCT Law Scope
The List (IV) consists of goods such as caviar, cosmetics, fur, air conditioner, heater, white goods, mobile phone, television, camera, sound and image recorders, revolver etc. 2.6.1.Taxable Event for the Goods in List (IV)
Taxable event occurs at the time of their delivery by their manufacturers, importation or sale at public auction before tax is applied.
2.6.2.Exemptions
Exemptions for the goods within List (IV) are:
Exportation exemption,
9302.00 ve 93.03 CN coded goods delivered to Ministry of Defence, Gendarmerie, Coast Guards, National Intelligence, Police and Customs Guards,
Goods delivered to public institutions without any charge,
Importation exemption, (only for the goods which are free of customs duty)
Usage Note: This document includes unofficial translation and explanatory notes regarding Turkish tax laws. This note shall not
have legal bindingness. It shall not be used as an official document in any official and private corporations and institutions and
national and international courts. It shall not be quoted for official documents. Our administration cannot be held responsible for
any legal results that may occur with the use of this note. The Turkish version of the laws are binding for official and private
operations, quotes and legal processes.
Exemption for the goods subject to regimes (transit, customs warehouse, inward processing, customs control, free zones and provisional warehousing) generating from the Customs Law No. 4458.
2.6.3.Deferment and Cancellation
The SCT of the good within the scope of List (IV) delivered to the exporters for the purpose of exportation is assessed, accrued and then deferred by related tax office upon the request of taxpayers, provided that tax is not collected by these taxpayers from exporters.
Deferred tax is then cancelled when the vehicles have been exported within 3 months as of the first day of the month following the date of delivery to the exporter. 2.6.4.Tax Deduction
If any good subject to SCT within List (IV) is used in manufacturing of other goods in the same list, tax paid shall be deducted from due tax.
2.6.5.Rate
The tax shall be collected according to the rates stated in List (IV) annexed to the Law. The Council of Ministers is authorized to change the rates and/or amounts within the limits indicated in the Law.
Taxation is proportional for the goods, all but one in List (IV): minimum tax determined is applied only for mobile phones. Tax on mobile phones calculated on proportional basis cannot be less than the tax amount calculated according to minimum tax amounts. 2.6.6.Tax Base
Tax base for the goods of List (IV) is VAT tax base excluding SCT.
2.6.7.Declaration, Assessment and Payment of Duty
SCT is assessed and collected upon declaration of taxpayers.
Tax return is submitted electronically to the tax office until the 15th day of the month following the end of the taxation period and the tax shall be paid within period of submission of the return. In 2015, 25.98% of the General Budget Tax Revenues comes from SCT and the total amount of tax revenues derived from SCT is 105.902.496.000 TL (Turkish Lira).
Source: The Republıc Of Turkey Mınıstry Of Fınance Revenue Administration
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