The withholding tax rate on sales of goods and services within the scope of e-commerce has become 1 percent, and intermediary service providers and e-commerce intermediary service providers will apply these deductions, and the presidential decree in this regard has been published in the Official Gazette.
Accordingly, the withholding rate on payments made for sales of goods and services carried out within the scope of e-commerce has been determined at 1 percent.
With the regulation issued by Law No. 7524, the application of withholding on payments made by intermediary service providers and e-commerce intermediary service providers to service providers and e-commerce service providers due to their activities falling within the scope of the E-Commerce Regulation Law has been introduced.
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Who will be responsible for the withholding?
Intermediary service providers, natural or legal persons who provide an e-commerce environment for the economic and commercial activities of others, e-commerce intermediary service providers, and intermediary service providers who enable the conclusion of contracts or orders for the supply of goods or services to e-commerce service providers in the e-commerce market on payments they mediate due to their activities falling within the scope of the E-commerce Regulation Law were forced to implement the blocking.
Who will be blocked?
Service providers, natural or legal persons engaged in e-commerce activities, e-commerce service providers, and service providers who conclude contracts or receive orders for the supply of goods or services in the e-commerce market or in their own e-commerce environment will be subject to withholding tax on payments made to them for the sale of goods and the performance of services by those who act as intermediaries.
The decision will come into effect on January 1, 2025, and from this date a withholding tax of 1 percent will be applied.
Therefore, the taxes withheld and paid during the year through withholding will be offset against the tax that will be calculated on the income and corporate tax returns of the taxpayers from whom the withholding was made.
