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Indirect Tax

When a tax is not paid directly from an individual’s income or earnings, it is known as an indirect tax. The tax is simple and inexpensive to collect because it is made immediately upon the purchase of goods and services. Indirect taxes and their applications, as well as their fairness, have been a topic of discussion in recent weeks. Due to the extremely high indirect tax shares, this issue has become critical. Indirect tax shares have unquestionably risen in the recent period.

In this study, we want to examine the psychological and economic benefits and drawbacks of indirect taxes on individuals by mentioning the various types of indirect taxes.

Which Indirect Tax Categories Are There?

  • Valuation-Based Tax (VAT)
  • Excise Tax for Special Purposes (SCT)
  • Exemption for transactions in banking and insurance (BSMV)
  • Customs duties and taxes
  • The Gambling Tax

These indirect tax types will be examined in greater detail below.

Valuation-Based Tax (VAT)

All economic stages of our country’s goods and services are covered by VAT, which is paid by the person who delivers the goods or services. Because of this, tax is levied according to how much value is added from production to distribution to its final stage.

What Is the Calculated VAT?

During the sale of goods, sellers receive invoices and other paperwork. Documents are edited by them. The buyer is required to pay the service fee and VAT, which are shown on the invoice. CALCULATED VAT is another name for this.

When Do You Have to Pay VAT?

Value added tax must be paid by the end of the day on the 26th day of the month in which the notice is issued.. Taxes are already included in the price of the product. Taxpayers can use this date.

Exactly what is the SCT (Separate Consumption Tax)?

Excise Tax for Special Purposes Products that are not considered luxury goods or necessities are subject to a tax known as the Special Consumption Tax (SCT). This tax is intended to discourage consumers from purchasing these items.

Is SCT used on what products?

In high-end goods (such as fur, jewellery, luxury cars),

In products that are detrimental to the health of the human body (such as alcohol, cigarettes, which are monopoly products),

When it comes to environmentally harmful goods (such as fossil waste, gasoline, coal)

What is the Special Communication Tax (SCT)?

All Turkish mobile communication services are subject to this tax, which was enacted in the wake of the 1999 earthquake. The tax was first collected continuously on January 1, 2004, following the passage of Law No. 5035. GSM users are responsible for paying and operators are responsible for collecting the tax.

We can see this from the rates.

25% of cell phone calls and 15% of landline phone calls are spam.

There is a single rate of 5 percent and 7.50 percent for SCT in internet services.

Is there a tax on the transactions of banking and insurance?

Banks collect this type of tax from their customers, which is a byproduct of credit transactions.

A tax on bank insurance transactions is levied on certain types of banking transactions.

5 percent of BSMV is deducted from all EFT transactions, regardless of location.

5 percent of BSMV is deducted from all transfer transactions, regardless of location.

International transfers are subject to a 5% BSMV tax regardless of where they are made.

Customers with overdraft accounts pay an interest fee of up to 5% to BSMV.

BITT is deducted from the default interest that credit card users accrue when they fail to pay their bills on time.

Banks charge BITT from early closed loans if they charge an early closing fee.

The Gambling Tax

In the case of gambling, it is a form of tax.

Amount of tax levied on gambling winnings:

Joint bets on sporting events account for 5% of the total, while wagers on horse races account for 7% and other games of chance account for 10%.

In 2006-2018, the percentage of the budget dedicated to gambling taxes (percentage) was 2 percent.

What is the meaning of the term “Stamp Duty”?

On legal and official documents, such as contracts and invoices, stamp duty is levied to cover the costs of printing and distributing them.

What is the customs duty?

As a result of the purchase and sale of goods and services between countries, the country receiving the goods and services pays the other country a customs tax. Whenever a country exports goods, it receives a certain amount of money under the name of customs tax when that country imports the goods.

Of course, customs duty has both advantages and disadvantages. To begin, let’s discuss the advantages of this strategy;

As a result of customs taxes collected, the country’s budget is greatly bolstered by this source of revenue.

Using customs taxes, nations can also control the importation of goods and services. Tax rates are higher for products that must be difficult to enter the country, while tax rates are lower for products that must be easy to enter the country, as an example.

The role of the domestic market in protecting the country’s industry is significant.

There is no limit to the amount of damage that can be caused by a customs tax increase, as long as both countries are trading with each other. This could have a negative impact on international relations.

People will be compelled to trade illegally or illegally if customs duties are too high. In order to address these issues, the country devotes significant resources.

As a result of customs tax, people in the country consume goods purchased from abroad that are more expensive than the global market.