Our firm provides specialized legal counsel and dispute resolution services in the field of indirect taxation, representing corporate clients in both contentious and advisory matters under Turkish law. We combine rigorous legal analysis with practical dispute experience to ensure compliance with indirect tax obligations, assess and mitigate legal risks, and advocate effectively for client interests in audits, administrative proceedings, and litigation.

Here are some indirect tax topics among our capabilities:

i. VAT Disputes

ii. VAT Refunds & Rebates

iii. Excise Disputes

iv. Customs Duties

v. Stamp Duty

vi. Banking and Insurance Transactions Tax

vii. Environmental Taxes

The following sections describe the details of our capabilities in each topic:

i. VAT Disputes

Value Added Tax (VAT) is Turkey's primary consumption tax, with standard and reduced rates applying to most goods and services. VAT disputes arise concerning taxability, place of supply, rate application, input VAT deduction, exemptions, reverse charge mechanisms, and procedural compliance. Turkish VAT law is complex and frequently amended, creating significant compliance challenges. Our firm represents clients in VAT disputes at all stages, from audits and administrative proceedings through litigation before tax courts. We handle disputes involving VAT assessments, penalties, and refund denials, developing technical legal arguments supported by detailed analysis of VAT legislation, regulatory guidance, and administrative practice. Our VAT controversy practice helps clients resolve disputes favorably, establish defensible positions for ongoing compliance, and protect their interests through effective advocacy before tax authorities and courts.

ii. VAT Refunds & Rebates

Turkish VAT law provides refund mechanisms for exporters, certain industries, and taxpayers with excess input VAT. However, VAT refund procedures are administratively demanding with extensive documentation requirements and are highly audit-prone. Refund delays and denials are common, creating cash flow distortions for businesses. Our firm assists clients with VAT refund applications, ensuring documentation meets administrative requirements, handling refund audits and defending claims for input VAT recovery, and representing clients in challenging wrongful refund denials. When refunds are delayed or denied without legal basis, we litigate before tax courts, presenting legal arguments and evidence to establish entitlement to refunds and compel payment.

iii. Excise Disputes

Excise duties (referred to as "special consumption tax" under Turkish law) apply to specific products including petroleum products, tobacco, alcohol, automobiles, and other enumerated goods, often at substantial rates. Excise disputes involve questions of product classification, rate application, exemptions, and procedural compliance. The complexity of excise regulations and frequent rate changes create compliance challenges and dispute risk. Our firm represents clients in excise duty disputes, handling assessments, penalties, and refund claims before administrative and judicial authorities. We provide technical legal analysis on excise law issues, present arguments before tax authorities and courts, and advocate for clients' positions to minimize excise duty liability and resolve disputes favorably.

iv. Customs Duties

Import customs duties remain significant revenue sources and trade policy tools in Turkey. Disputes concerning customs duty liability involve questions of tariff classification, valuation, preferential origin, and duty suspension or exemption regimes. Our firm has deep expertise in customs duty disputes, representing importers in challenges to customs assessments, defending against duty penalties, and pursuing duty refund claims. We analyze complex customs duty issues under Turkish customs legislation and EU-harmonized customs rules, and advocate effectively before customs and judicial authorities to protect clients' commercial interests.

v. Stamp Duty

Turkish stamp duty applies to a wide range of documents and transactions based on document type and value. Stamp duty disputes arise concerning the taxability of documents, valuation bases, exemption application, and procedural compliance. While individual stamp duty liabilities are often modest, aggregate exposure can be substantial, particularly for financial institutions and companies with extensive documentation. We review instruments to assess taxability and proper valuation, assist clients in determining stamp duty liabilities, represent them in disputes concerning stamp duty assessments, and pursue appeals to challenge excessive or improper stamp duty claims.

vi. Banking and Insurance Transactions Tax

Banking and Insurance Transactions Tax (BITT) applies to a defined list of banking and insurance services in lieu of VAT. BITT disputes involve questions of service characterization, exemption application, and the boundary between BITT and VAT scope. Our firm advises financial institutions and insurance companies on BITT compliance and represents them in BITT disputes and litigation, defending service characterizations and exemption applications before tax authorities and courts. We provide technical legal analysis on the complex interaction between BITT and VAT, helping financial sector clients navigate their indirect tax obligations, ensure compliance with applicable legislation, and resolve disputes through effective advocacy.

vii. Environmental Taxes

Turkey has recently introduced the Recycling Contribution Fee (GEKAP) applicable to plastic bags, tires, batteries, lubricating oils, vegetable oils, pharmaceuticals, electrical and electronic goods, and all packaging including beverage packaging. While GEKAP represents Turkey's first significant environmental tax measure, environmental tax regulations are expected to evolve rapidly as Turkey develops its green policy framework. Our firm provides legal counsel on environmental tax matters, analyzing obligations under GEKAP and emerging environmental regulations, advising on compliance requirements for regulated products, and representing clients in disputes before administrative authorities and courts. We help companies navigate Turkey's developing environmental tax landscape and stay compliant as regulations evolve.