Article 9 of Law No. 7194 introduced a new tax referred to as “Accommodation Tax” in an amendment to the abolished Article 34 of the Expenditure Tax Law No. 6802. 

With this new arrangement, accommodation services and all other services rendered by these accommodation services (e.g., food, beverage, activities, entertainment services, pool, sport, thermal, and similar services) offered by accommodation facilities such as hotels, hostels, holiday villages, pensions/lodgings, apart hotels, guest houses, camping, chalets, and plateau houses are subject to the Accommodation Tax. Whether or not the accommodation services are provided within the facilities, such as wellness facilities or entertainment centers shall bear no effect on the taxation. 

The taxpayers subject to the Accommodation Tax are those who offer the services mentioned hereinabove. The taxgenerating event occurs upon the provision of the services listed above.

The tax base of the Accommodation Tax is the sum of the benefits, services, values provided in the money, goods, and other values received or borrowed for these services, excluding Value Added Tax (VAT), in return for the services subject to the tax. 

The rate for the Accommodation Tax has been set to 2% but the rate will be applied as 1% until 31.12.2020. The President is authorized to increase this rate by twofold, to reduce it by half, or to determine different rates within these limits. 

The Accommodation Tax must be indicated separately in invoices and other similar documents issued by the accommodation facilities. This tax may not be deducted under any name and may not be included in the tax base of VAT. 

The following services are exempt from the Accommodation Tax: 

a) Services provided to students in dormitories, hostels, and camps, and 

b) Services provided to diplomatic representatives, consulates, and people with diplomatic rights of foreign states in Turkey provided that this exemption is mutual, as well as international organizations and their individuals whose tax exemptions are provided for in international treaties 

The taxation period for the Accommodation Tax consists of one-month periods throughout the calendar year. 

The Accommodation Tax for each taxation period must be declared to the tax office where VAT tax returns are declared (or the tax office located in the jurisdiction the facility is situated in if the facility is not a VAT taxpayer) and must be paid before the twenty-sixth day of the month following the taxation period. 

The Accommodation Tax will become effective as of 01.04.2020.