Frequently asked questions about Turkey VAT

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in Turkey. It is a consumption tax because it is ultimately borne by the final consumer.

Who pays VAT?

Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.

If you are a business customer, you should provide your VAT number to Zoom. If the VAT number is valid then no VAT will be charged on the supplies made to you by Zoom. If you do not have a VAT number, then VAT will be charged on the supplies made to you by Zoom.

Why am I being charged VAT?

Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the rules concerning Electronically Supplied Services (ESS) in Turkey.

ESS supplied to end customers in the Turkey (commonly referred to as B2C supplies as the recipient is not registered for VAT) are subject to Turkish VAT.

For ESS supplied to business customers (commonly referred to as B2B supplies) Zoom will not charge VAT to customers in Turkey. Instead the VAT on B2B supplies of ESS should be self-accounted via the reverse charge mechanism by the recipient of the supply (e.g., the Turkish business that purchases the supply from Zoom).

What is a VAT number?

A VAT number is a unique 10-digit number that identifies a person/entity as being registered for VAT purposes in Turkey. 

Does Zoom have a VAT number?

Yes, Zoom will include its VAT number on tax invoices issued to customers in Turkey.

How do I enter my VAT number?

To provide your VAT number, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.

Zoom performs periodic validation checks of customer VAT numbers to ensure that the VAT number remains valid. If, during these periodic validations, it is identified that your VAT number is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid VAT number is provided.

You are required to notify us if there is a change to your VAT registration status.

What happens if I do not have a VAT number?

If a customer in Turkey is unable to supply a valid Turkish VAT number Zoom will charge and collect Turkish VAT on its supplies to you.

How is Zoom determining which customers Turkish VAT applies to?

If a customer's ‘Sold To’ location is in Turkey, and the customer has not provided a valid Turkish VAT ID, Zoom will charge VAT on its invoices.

This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.

It is your responsibility as a customer to ensure that your ‘Sold To’-address is accurate.

Is there a minimum threshold purchase amount before VAT is applied?

No, VAT applies to all sales of Zoom’s services where a customer is located in Turkey and a valid Turkish VAT number is not provided by the customer.

What exemptions are available?

Based on the current VAT legislation in Turkey, all services currently provided by Zoom are subject to VAT in Turkey. If you have provided a valid Turkish VAT number then no VAT will be charged; however, you may be required to self-account for VAT under the reverse charge mechanism.

Are there any VAT obligations for me as a customer?

If you have provided a valid VAT number no VAT will be charged to you. However, you may have a requirement to report the purchase of services through your VAT return via the reverse charge mechanism.

If I have entered my VAT number will Zoom issue me an invoice?

Yes, Zoom will issue an invoice for all supplies made to business customers.

On the invoice you receive from Zoom if you have entered your VAT number in your Zoom account your invoice will show your VAT number, your business name as well as other details specific to the supplies Zoom makes to you. 

If I do not have a VAT number will I get an invoice?

Yes, Zoom will issue an invoice for all supplies made to non-business customers where VAT is charged.

What if I have a VAT number and forget to enter it?

Your VAT number can be entered at any time. If entered before the next invoice is issued, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no VAT number is entered at the time the next invoice is issued, VAT will be charged until a valid VAT number is entered. 

If you have a VAT number and provide this to Zoom after an invoice has been issued then Zoom will correct the previous invoice where the VAT number is provided by the fifth day after the month the invoice is sent (e.g., the invoice is sent on August 15 without the customer’s VAT number, then the customer has until September 5 to provide Zoom the VAT number and for Zoom to correct the invoice). 

Decision tree – I am resident in Turkey; will I be charged VAT?

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.