Is the 30 Euro Limit Inclusive of Tax?

Turkey recently adjusted its customs regulations, lowering the tax-free limit for individual purchases from abroad via courier or postal services from 150 euros to 30 euros. This change, effective August 21st, raises the question: “30 Euro Sınırına Vergi Dahil Mi?” – Is the 30 euro limit inclusive of tax? The answer is no. The 30 euro limit applies to the value of the goods before taxes and duties are applied. This means that any product exceeding this threshold, even by a small amount, will be subject to import duties and potentially other taxes like VAT.

This new regulation impacts online shoppers purchasing goods from outside the European Union (EU). For products originating from EU countries, the customs duty increased from 20% to 30%. For goods from non-EU countries, the duty jumped from 30% to a hefty 60%. This significant increase effectively doubles the tax burden for many imported items. For example, a 100 lira product (pre-tax) from a non-EU country would previously have incurred a 30 lira customs duty. Now, the same product faces a 60 lira duty, a 100% increase.

This change excludes purchases made from physical stores within Turkey, as these already fall under standard import regulations. It also specifically targets individual consumers, excluding corporate purchases from the tax exemption. This distinction aims to prevent businesses from exploiting the lower limit for commercial purposes. The government’s stated goal is to protect domestic producers and generate revenue for the treasury. However, some analysts believe the primary objective is revenue generation.

The impact on consumers is significant. A 100 lira item from outside the EU, subject to a 20% VAT, now faces an additional 92 lira in taxes and fees (60 lira customs duty plus 32 lira VAT). This effectively doubles the cost of the product. Additionally, customs processing fees and stamp duties can further increase the final price.

While large international companies like Nike, which halted online sales to Turkey following the announcement, may adjust their pricing or logistics to mitigate the impact on consumers, smaller businesses and individual sellers may struggle to adapt. The long-term consequences on consumer behavior and cross-border e-commerce remain to be seen. Some consumers may continue purchasing goods from abroad due to lower international prices or established buying habits.

The Turkish Ministry of Trade reported that in 2023, domestic spending accounted for 93.37% of e-commerce transactions. Cross-border purchases by Turkish citizens represented only 3.75% of the market. However, this new regulation may significantly alter these figures, potentially driving consumers towards domestic retailers or encouraging informal, untaxed purchasing channels.

The new regulation specifically targets goods purchased through international courier and postal services, impacting individual consumers making online purchases from abroad. This aims to curb tax avoidance and generate revenue for the state treasury. The law does not apply to goods purchased in physical stores within Turkey or brought in by travelers within the personal allowance limits.

The abrupt change in regulations has led some international companies, like Nike, to suspend online sales to Turkey, highlighting the potential disruption to established business practices and consumer access to foreign goods. The long-term economic effects of the new policy remain to be assessed.