VAT Withholding And Income Tax Withholding In Commercial Advertising Services

As per the Value Added Tax General Implementation Communiqué, all VAT payers and designated buyers must apply 3/10 VAT withholding on commercial advertising services. 

The essential points that are considered in the invoices to be issued within the scope of services related to internet advertisements are as follows.

• 3/10 VAT withholding application is valid for real and legal persons who are liable to VAT. Companies that are VAT taxpayers must issue the invoices considering the 3/10 VAT withholding application, in case the service amount exceeds 2.000 TRL including VAT.

• Fully (10/10) VAT withholding is applied to the earnings of individuals who are not VAT taxpayers.

• 15% income tax withholding is deducted from individuals who are not VAT taxpayers and real persons who are VAT taxpayers.

Please find the sample calculations for invoices to be issued in this context below.