VAT Practices for Cards, Passwords, E-Pins, and Gift Cards, and the Obligation to Retain Legal Counsel

VAT application on the sales of cards, passwords, codes, game codes, e-pins, gift cards/vouchers, discount codes, wallet codes and similar items.

We had previously informed you about this matter in our newsletters. The draft legislation was made official by being published in the Official Gazette on January 18.

Roughly; payments made for such virtual codes will be subject to VAT if they are for a specific product or service, whereas they will not be subject to VAT if they are for a general payment rather than a specific product or service.

The selling company will additionally calculate VAT over the service fee, commission, or brokerage income added on top.

VAT will be declared as VAT-1, VAT-2, or VAT-3 depending on the status of the seller of the product and service or the customer.

In-game purchases, Windows and Office 365 codes, and 3-month Spotify subscription cards will be subject to VAT, whereas Steam codes, Google Play codes, accommodation cards, and wallet codes will not be subject to VAT since they are not associated with a specific product/service.

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Obligation for joint-stock companies to retain legal counsel. The minimum capital for joint-stock companies under the Commercial Code was increased to 250,000 TL on January 1, 2024. Joint-stock companies with a capital exceeding 5 times this amount are required to retain legal counsel. Therefore, joint-stock companies with a capital exceeding 1,250,000 TL have an obligation to retain legal counsel.

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The tax-free daily domestic travel allowance amount for the year 2024 has become 480 TL.

Two methods can be used for travel expenses. One of these two methods must be chosen; they cannot be used together.

a) Allowance method (Excluding transportation, accommodation, and food expenses can be incurred without documentation up to the daily allowance amount, and no tax is calculated)

b) Actual method (all expenses are incurred against documentation)

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The mandatory amount that banks are required to pay for bad checks has been increased from 6,000 TL to 9,270 TL.

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Electronic invoice issuing limit. For the sales listed below, e-invoices or e-archive invoices must be issued. Invoices cannot be issued on paper media.

a) Sales of 5,000 TL and above including tax to end-users who are not tax payers

b) Sales of 6,900 TL and above including tax to tax payers

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Independent audit obligation. 2 out of the following 3 criteria must be met:

a) Total assets of 75 million TL and above

b) Annual net sales revenue of 150 million TL and above

c) Number of employees of 150 and above

Companies subject to independent audit must publish their company information on their website under the heading Information Society Services within 90 days.

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By how much was the pension increased? 49.25%

Calculation of the pension paid/to be paid in January

Increased salary = Base salary / 1.3757 x 1.4925

Example 1. Base salary is 7,600 TL. Increased salary = 7,600 / 1.3757 x 1.4925 = 8,245.26 (Since it is below 10,000 TL, it will be 10,000 TL)

Example 2. Base salary is 9,500 TL. Increased salary = 9,500 / 1.3757 x 1.4925 = 10,306.57 (Since it is below 10,000 TL, it will be 10,000 TL)

You can check your base salary via e-Government.

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Companies whose turnover is sufficient to obtain a gun license. If 1 of the following criteria is met, an application for a gun license can be submitted:

a) Net sales for the year 2023 being 120,000,000 TL and above

b) Corporate Tax amount being 2,000,000 TL and above

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Change in the İŞKUR On-the-Job Training Program. If you benefit from this incentive, support is received in the amount of the minimum wage and the number of months operated for the number of people within this scope. İŞKUR reduced the employment commitment obligation from 252 months to 144 months. For you to benefit from this incentive

a) according to the old legislation, you were required to employ 14 people for 18 months (total of 252 months)

b) according to the new legislation, you are required to employ 12 people for 12 months (total of 144 months)

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An important issue regarding tax-exempt daily meal allowances. Even though 170 TL per day has been determined according to tax laws, the daily meal allowance exempt from SSI is 157.69 TL. For meal allowances provided higher than 157.69 TL per day

a) Meal allowances paid lower than 157.69 TL per day ... Exempt from tax and SSI

b) Meal allowances paid between 157.69 TL and 170 TL per day ... Exempt from tax, subject to SSI

c) Meal allowances paid above 170 TL per day ... Subject to both tax and SSI

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The 2024 Investment Incentive Certificate application fees have been determined. The issuance fees for investment incentive certificates have become 6,000 TL, 15,000 TL, and 29,000 TL depending on the amount stated in the incentive certificate.

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