Observed by main groups according to the destination of consumption, in September 2023 in relation to the previous month, increase of prices was noted in the groups Transport (1.8%), Restaurants and hotels (0.9%), Health and Furnishing, household equipment and routine household maintenance (by 0.5% each), Housing, water, electricity, gas and other fuels (0.4%) and in the groups Food and non-alcoholic beverages and Alcoholic beverages and tobacco (by 0.2% each). Decrease of prices was noted in the groups Recreation and culture (-2.9%) and Communication (-0.1%).

Source: Statistics Serbia
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Retail trade turnover in January 2023 relative to 2022 average decreased by 8.8% at current prices, and by 14.3% at constant prices.

Retail trade turnover is obtained on the basis of regular monthly statistical survey “Monthly Survey of Retail Trade”, based on the sample and on VAT reports received from Tax administration.

The turnover indices at constant prices (real indices) have been obtained by deflating the indices at current prices (nominal indices) by the corresponding consumer price indices, excluding: water (from public utility systems), electricity and motor vehicles, motorcycles and parts.

All published indices ought to be regarded as preliminary, meaning that certain corrections can appear on the basis of the estimated results, obtained from the regular statistical surveys that are conducted on the increased number of sample units.

Source: Statistical Office of the Republic of Serbia
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

• Equal treatment of citizens of both parties in terms of rights and obligations,
• Aggregation of periods of insurance completed in the territory of the other contracting party for the determination of entitlement to a benefit,
• In case of an illness, the insured person and his/her family members can avail themselves of the right to healthcare benefits while staying in the territory of the other contracting party,
• Family members can avail themselves of the family benefits (child benefits and increments) while residing in the territory of the other contracting party,
• Entitlement to a retirement pension for an insured person, who attains the required age after returning to the other contracting party,
• Continuing to receive the pension, acquired regarding the employments in one of the contracting parties, after transferring of the residence to the other contracting party,
• In case of death of the insured person, family members residing in the territory of the other contracting party can be entitled to a widow’s or orphan’s pension and a lump sum payment as the survivors of the deceased.

Accordingly, those who will avail themselves of the provisions of the agreement are considered equal in the legislations of the contracting parties to the citizens of that country in terms of rights and interests through a common and key provision of the agreements. Thus our citizens employed in the contracted countries and their dependents can benefit from their social security rights under the same conditions as the nationals of that country.

As a result of the social security agreements, our citizens in Turkey have the opportunity to avail themselves of their social security rights, arising from the legislation of the other country and acquired with respect to long and short term insurance branches. In addition to the insured person himself/herself, his/her family members living with him in the country of employment, the family members living in Turkey can benefit from this right.

Turkey has signed Social Security Agreements with 28 countries. These agreements are enumerated in the table below.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

I have a refund regarding participation to exposition, exhibition and fair:
– If your domicile, workplace, legal center or work center is not located in Turkey,
– If you are a resident of  a country providing reciprocity between Turkey on VAT refund, ( Bosnia- Herzegovina, Bulgaria, Denmark, Finland, France, Netherlands, Ireland, Switzerland, Italy, Malta, Norway, Portugal, Romania, Serbia, Slovakia, Slovenia) ( VAT Law – Circular numbered 60)
– If the delivery of goods and the execution of services regarding the participation to exposition, exhibition and fair are exclusively related to these jobs (accommodation included),
– If the cost of the purchased goods/services, including VAT, is over the limit of invoicing within the related period. (900 TL for 2016 and 2017)
– You can get your VAT refund by applying to the tax office determined by the Tax Office Directorate/ Defterdarlık at the province where the exposition, exhibition and fair activities are executed with a petition.

I have a refund resulting from the touristic shopping:

You cannot get VAT refund in case you bought a touristic service.
– If you are a foreign national individual not residing in Turkey,

You can get refund of VAT providing that you get the goods out of Turkey within 3 months beginning from the date of the invoice or similar documents and if:

each invoice for the goods you purchased is over 100 TL (VAT exclusive),

the goods you purchased are not among the goods listed in Special Compsumtion Tax Law Annex I,

the seller from whom you purchase goods is a taxpayer who has the License of VAT Export Exception or is eligible to prepare the special invoicing.

The special invoice which is prepared by the seller for the sales under exception needs to involve the following information;
– Type and number of your passport,
– The branch of your bank and your account number in that bank.

The seller has to prepare the invoice as 4 copies and submit 3 of them to you.

If you want to get your refund from the bank branch at customs;

The salesperson should give you a cheque belong to a bank he has contract; indicating the date and number of the invoice and the total amount of VAT as TRY (Turkish Lira)

You may get your VAT refund from the bank branch at the customs after you get the cheque and the invoice approved by the customs officer.

If you want your refund to be paid to your bank account;

In case you sent your invoice; which is approved as you carry the goods with you, within 3 months following the date of your departure; your refund might be deposited to your bank account or might be sent to your address within 10 days after the salesperson receives the invoice indicates your refund amount.

If you want your refund to be paid in cash;

The salesperson may pay your refund in cash in case you bring the approved copy of your invoice to the salesperson within 3 months following the date of your departure.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

In this regard, Common transit is used for the movement of goods between the EU Member States, the EFTA countries (Iceland, Norway and Switzerland– including Liechtenstein in as far as it forms a Customs Union with Switzerland) Macedonia, Serbia and Turkey.

In the capacity as the 2015 year chairmanship of EU/EFTA Joint Committees of the Conventions on common transit and on the simplification of formalities in trade in goods, The Ministry of Customs and Trade of the Republic of Turkey conducted and finalized the accession process of both Macedonia and Serbia to the Conventions.

Thereby firstly, Macedonia becomes the Contracting Party of the Conventions as of 1 July 2015.  Then, as of 1 February 2016, Serbia joined the Common Transit System. By this accession, number of the Contracting Parties to the Conventions increased to 35.

The accession to the conventions enables easier and faster movement of goods due to the realization of the transit procedure by submitting a single transit declaration in electronic form in the place of departure which is valid for the entire journey until the place of destination within the contracting parties of the Convention. The transit declaration is simultaneously used as a so-called entry summary declaration which should be submitted for commodities entering any EU Member State.

The New Computerized Transit System (NCTS) is a system that is based on the use of advanced computer technology and electronic data processing. NCTS is the basis for the implementation of the transit procedure by exchanging electronic messages between agents in the customs procedure and customs offices, as well as among customs offices. It serves as a tool for management and control of the transit operations and provides more modern and efficient management from the system that used to be based on paper.

On the other hand, Turkish Customs Administration completed the technical studies of adoption of the amendments to the Convention and its Appendices both with respect to the substance and terminology on the basis of the decision of EU-EFTA Joint Committee on Common Transit No. 1/2016, for the purpose of their alignment with the requirement of the Union Customs Code as well as its relevant delegated and implementing acts, which has been in effect as of 1st May 2016.

Source: Ministry of Customs and Trade

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It came into existence as a unique and promising model of multilateral political and economic initiative aimed at fostering interaction and harmony among the Member States, as well as to ensure peace, stability and prosperity encouraging friendly and good-neighborly relations in the Black Sea Region.

The BSEC Headquarters- the Permanent International Secretariat of the Organization of the Black Sea Economic Cooperation (BSEC PERMIS) – was established in March 1994 in İstanbul.

With the entry into force of its Charter on 1 May 1999, BSEC acquired international legal identity and was transformed into a full-fledged regional economic organization: Organization of the Black Sea Economic Cooperation. With the accession of Serbia in April 2004, the Organization’s Member States increased to twelve.

BSEC covers a geography encompassing the territories of the Black Sea littoral States, the Balkans and the Caucasus with an area of nearly 20 million square kilometers. BSEC region is located on two continents and it represents a region of some 350 million people with a foreign trade capacity of over USD 300 billion annually.

Source: Ministry of Customs and Trade

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Legal Framework of Foreign Direct Investment
1. Foreign Direct Investment (FDI) Law No. 4875

The aim of the Foreign Direct Investment (FDI) Law No. 4875 is:

• to encourage FDI in the country
• to protect the rights of investors
• to align the definitions of an investor and investment with international standards
• to establish a notification-based system rather than an approval-based one for FDI
• to increase the volume of FDI through streamlined policies and procedures

The FDI Law provides a definition of foreign investors and foreign direct investments. In addition, it explains important principles of FDI, such as;

• freedom to invest,
• national treatment,
• expropriation and nationalization,
• freedom of transfer,
• national and international arbitration and alternative dispute settlement methods,
• valuation of non-cash capital,
• employment of foreign personnel,
• liaison offices.

The Regulation on the Implementation of the FDI Law consists of specifying the procedures and principles set forth in the FDI Law. The aim of the FDI Law with regard to the work permits for foreigners is:

• to regulate the work carried out by foreigners
• to stipulate the provisions and rules on work permits given to foreigners

  2. Bilateral Agreements
  2.a. Bilateral Agreements for the Promotion and Protection of Investments
  Bilateral Agreements for the Promotion and Protection of Investments were signed from 1962 onwards with countries that show the potential to improve bilateral investment relations. The basic aim of bilateral investment agreements is to establish a favorable environment for economic cooperation between the contracting parties by defining standards of treatment for investors and their investments within the boundaries of the countries concerned. The aim of these agreements is to increase the flow of capital between the contracting parties, while ensuring a stable investment environment. In addition, by having provisions on international arbitration, they aim to prescribe ways to successfully settle disputes that might occur among investors and the host state. Turkey has signed Bilateral Investment Treaties with 94 countries. However, Turkey is a dualist country, where an international treaty has to be ratified and promulgated in order to become part of the national legal system. Within this regard, 75 Bilateral Investment Treaties out of these 94 have gone into effect so far.

75 countries
Afghanistan, Albania, Argentina, Australia, Austria, Azerbaijan, Bangladesh, Belarus, Belgium-Luxembourg, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cuba, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, Oman, Pakistan, Philippines, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Ministry of Economy

2. b. Double Taxation Prevention Treaties
Turkey has signed Double Taxation Prevention Treaties with 80 countries. This enables tax paid in one of two countries to be offset against tax payable in the other, thus preventing double taxation.

80 countries
Albania, Algeria, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belarus, Belgium, Bosnia and Herzegovina, Brazil, Bulgaria, Canada, China, Croatia, Czech Republic, Denmark, Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Moldova, Mongolia, Morocco, Netherlands, New Zealand, Norway, Oman, Pakistan, Poland, Portugal, Qatar, Romania, Russian Federation, Saudi Arabia, Serbia and Montenegro, Singapore, Slovakia, Slovenia, South Africa, South Korea, Spain, Sudan, Sweden, Switzerland, Syria, Tajikistan, Thailand, Tunisia, Turkish Republic of Northern Cyprus, Turkmenistan, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Yemen
Source: Revenue Administration

Turkey is continuing to expand the area covered by the Double Taxation Prevention Treaty by adding more countries on an ongoing basis.

2. c. Social Security Agreements
Turkey has signed Social Security Agreements with 26 countries. These agreements make it easier for expatriates to move between countries. The number of these countries will increase in line with the increased sources of FDI.

26 countries
Albania, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Canada and the Province of Quebec, Croatia, Czech Republic, Denmark, France, Georgia, Germany, Libya, Luxembourg, Macedonia, Netherlands, Norway, Romania, Slovakia, Serbia, South Korea, Sweden, Switzerland, Turkish Republic of Northern Cyprus, United Kingdom
Source: Social Security Institution (SSI)

3. Customs Union and Free Trade Agreements (FTA)
A Customs Union Agreement between Turkey and the European Union has been in effect since 1996. The agreement allows trade between Turkey and the EU countries without any customs restrictions. The EU-Turkey Customs Union is one of the steps toward full Turkish membership of the EU itself.

Turkey has FTAs with 37 countries, creating a free trade area in which the countries agree to eliminate tariffs, quotas and preferences on most goods and services traded between them. This framework explains why many global companies are now using Turkey as a second supply source and manufacturing base, not only for the EU and rapidly growing Turkish markets, but also for the Middle East, Black Sea and North African markets, with the added advantage of a relatively low-cost but well-educated labor force, coupled with cost-effective transportation.

37 countries
Albania, Bosnia and Herzegovina, Egypt, Georgia, EFTA, Israel, South Korea, Macedonia, Morocco, Malaysia, Mauritius, Palestine, Jordan, Syria*, Tunisia, Montenegro, Serbia, Chile
Countries that have finalized the negotiation process: Faroe Islands, Ghana, Kosovo, Lebanon, Moldova, Singapore
Countries in the negotiation process: Democratic Republic of the Congo, Cameroon, Colombia, Ecuador, Gulf Cooperation Council, Japan, Libya, Mexico, Mercosur, Peru, Seychelles, Ukraine *suspended
Source: Ministry of Economy

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Source: TurkStat

Due to the implementation of the liberalization process since the 1980s, the Turkish economy has experienced a period of substantial growth. Foreign trade, in respect of both exports and imports, has grown rapidly and notable changes in the structure of exports have been observed. In this regard, industrial products have gained prominence over agricultural products.

Turkey became a member of the World Trade Organization (WTO) in 1995. Following this move, it finalized an agreement with the European Union, enabling it to join the Customs Union on January 1, 1996.

Exports
In line with the policies implemented as part of the export-led development model followed since 1980, exportation has become important to Turkey in both qualitative and quantitative terms.

Starting in particular in 1980 and continuing up to the mid-1990s, significant developments have been observed in the market share held by labor-intensive industrial products such as textiles and clothing, iron and steel, and foodstuffs.

In 1996, following the establishment of a Customs Union with the European Union, Turkey’s exports entered a new structural transformation process. Developments in recent years show that production and exportation have increased substantially in high-technology sectors, where goods include electrical and electronic machinery and equipment, as well as in the automotive industry. In this respect, it can also be observed that the export market share of manufactured industrial products has increased.

Top 10 Export Product Groups in 2016

Source: TurkStat

Major Export Markets in 2016 

Source: TurkStat

Imports
The Turkish import regime highlights the liberalization of Turkish imports in line with its commitment to complete the Customs Union with the EU, its relationship with EFTA, and its obligations under the World Trade Organization (WTO). Turkey has placed special emphasis on its commitment to reduce customs duties in order to align itself with the Common Customs Tariff. Turkey has made some necessary modifications to its import regime, and by January 1, 1996 the Customs Union with the EU became effective.

The basic aims of Turkey’s import policy since the early 1980s can be summarized as follows:

• To reduce protectionist measures in conformity with the new GATT rules
• To reduce bureaucratic procedures
• To secure a supply of raw materials and intermediary goods at suitable prices with certain quality standards

Turkey’s Membership of International Trade Organizations
Turkey has been a member of the World Trade Organization (WTO) since 1995. The country’s commitment to integrating regional and international trade norms can be seen in its participation in and membership of various organizations, including

• the Economic Cooperation Organization (ECO),
• the United Nations Conference on Trade and Development (UNCTAD),
• the Organization of the Black Sea Economic Cooperation (BSEC),
• the World Customs Organization (WCO),
• the International Chamber of Commerce (ICC),
• D-8,
• various other organizations

In addition to the Customs Union with the EU, Turkey has signed Free Trade Agreements (FTA) with

• Albania,
• Bosnia-Herzegovina,
• Chile,
• Egypt,
• Faroe Islands*,
• Georgia,
• Ghana*,
• Iceland,
• Israel,
• Jordan,
• Kosovo*,
• Lebanon*,
• Macedonia,
• Malaysia,
• Mauritius,
• Montenegro,
• Moldova*,
• Morocco,
• Norway,
• Palestine,
• Serbia,
• Singapore*,
• South Korea,
• Switzerland,
• Lichtenstein,
• Syria (pending),
• Tunisia. (*to be ratified)

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

 Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.