Turkey plans to introduce new tax rules on international e-commerce, which could significantly affect both local customers and foreigners in the country, FTN News reports.
Beginning August 21, 2024, these changes are expected to impact the growing community of expats and digital nomads, particularly in light of Turkey’s new digital nomad visa. This visa aims to attract international remote workers but, due to the new tax rules, it may come with unexpected challenges.
New tax thresholds for online shoppers
Turkish consumers and expats previously enjoyed relatively low taxes on international purchases made online.
Goods valued up to €150 were taxed at 18% in case they were bought from the European Union (EU) and 30% if purchased from non-EU countries.
However, the tax-free threshold will reduce to €30 under the new tax regulations. Here’s an overview of the new changes:
- Items bought from the EU will incur a 30% tax.
- Items purchased from non-EU countries will face a 60% tax.
This means a significant increase in the cost of everyday items that are ordered from international platforms like Shein and TEMU.
According to Muhammet Bayram, a certified public accountant and economist, the new tax regulations are aimed at protecting the domestic market by encouraging local purchasing and reducing competition from international sellers. This change will be especially impactful for luxury items.
Additional costs for luxury goods
The new rules also impose additional taxes on luxury items. These include decorative products, electronics, small kitchen appliances, and certain fashion accessories. For example:
- A €30 item from the EU will be taxed at 30%, plus an additional 20% fixed tax if classified as a luxury item.
- A €100 item from a non-EU country will be taxed at 60%, potentially doubling the total cost after including other fees.
For expats and digital nomads who rely on certain products from abroad, these new taxes can significantly increase the cost of living in Turkey. This could discourage the import of not just luxury goods, but essential work tools.
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Impact on expats and digital nomads
The new tax regulations coincide with the launch of Turkey’s digital nomad visa, which aims to attract entrepreneurs and remote workers. While the visa offers new opportunities, the increased cost of importing essential goods could be an unwelcome surprise for those planning to move to Turkey.
For the individuals who frequently shop abroad, there is some relief. The new rules do not apply to personal items brought back from overseas trips if they are within personal use limits.
However, items that are shipped to Turkey after August 21, 2024, will be subject to the new taxes.
As Turkey implements these new regulations, it is important for current and prospective residents to stay informed.
