Taxes on purchasing a vehicle in Turkey

When a foreigner decides to buy a vehicle in Turkey, they should be prepared that in addition to the cost of the car, they will have to pay additional taxes. One of the main taxes that foreign buyers encounter is the Special Consumption Tax (Özel Tüketim Vergisi – ÖTV) and the Value Added Tax (Katma Değer Vergisi – KDV) on vehicles.

 

ÖTV is a tax on goods considered luxury or intended for special consumption. In the case of vehicles, the tax amount is calculated based on their technical characteristics. The age and engine cylinder volume are primarily taken into account. The older the car and the larger its engine volume, the higher the tax will be. Electric vehicles or hybrid cars are exempt from paying ÖTV.

 

In addition, ÖTV rates are regularly updated according to the rules of the European Union on fuel economy and reduction of CO2 emissions. Therefore, vehicles with high environmental pollution levels are subject to higher taxation.

 

In addition to ÖTV, foreign buyers are also required to pay Value Added Tax (VAT), which is 18% of the vehicle’s cost in Turkey. VAT includes the cost of the vehicle and other taxes, such as ÖTV.

 

To find out the tax amount for a specific vehicle, foreigners can visit the website of the Revenue Administration (https://ivd.gib.gov.tr). On this website, they can find information about the current tax rates and use a calculator to calculate the exact amount they will need to pay when purchasing a car.

 

Therefore, when buying a vehicle in Turkey, foreigners should take into account the Special Consumption Tax (ÖTV) and the Vehicle Tax (KDV), which are calculated based on the characteristics of the car. To obtain accurate information about the size of these taxes, they can visit the official website of the Revenue Administration.

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