Facebook to levy tax on local ads in Turkey

ANKARA

Turkish-based advertisers on Facebook lacking a valid Turkish value-added tax (VAT) identification number will be charged 18 percent on the value of advertising services as of April 1, the social media giant has announced.

“Due to a recent change in Turkish tax law, Facebook Ireland Ltd is now registered for VAT as a non-established entity in Turkey,” Facebook said in an undated help section for advertisers, according to state-run Anadolu Agency.

If a Turkish entity does not provide a VAT ID number, “VAT at 18 percent will be charged on all advertising services,” it said.

“If you were recently charged $100 because you reached your $100 billing threshold, the subtotal for the charge will be $100 in ad costs,” the company said.

“An 18 percent VAT will be added on top of that, so you’ll pay $118.00 in total for that charge [$100 + $18 = $118.00].”

It also urged advertisers to check their account settings and make sure that they have provided the ID if they have it.

Advertisers with IDs account for VAT themselves under Turkish tax law, said the announcement.

According to private broadcaster CNN Türk, Facebook generated some 2.5 billion Turkish Liras in revenues from such operations in Turkey last year.

If the social media giant makes the same amount of money this year, the government will collect some 450 million liras as VAT revenues from Facebook.

Facebook has some 43 million users, while around 2.5 million small and medium-sized enterprises have business accounts on the social media outlet.