VAT Liabilities of Electronic Service Providers in Turkey

The topic of our paper is the new system in VAT taxation of B2C e-commerce - transactions between commercial corporations and customers executed via the internet - in Turkey and the problems arising from such imposition of VAT on B2C e-commerce. This topic will be assessed in three parts. In the first part, the general frame of VAT in Turkey will be briefly explained in order to understand the applicable new system in the taxation of B2C e-commerce. In the second part, the new system in the taxation of B2C e-commerce regulated via Communique No. 17 on VAT and its problems will be elaborated and also evaluated. Particularly; the concept of the electronic service provider, registration obligation of this person as a taxpayer, the threshold for relevant registration, the general and punitive measures against noncompliance of new system, the possible problems and failures will be arisen as to the application is the main points regarding this issue. In the final part, possible results of the new system and various thoughts will be considere d and shared about the new VAT system of B2C e-commerce. d and shared about the new VAT system of B2C e-commerce.