What Is Digital Service Tax?

With the introduction of digital transformation into every aspect of our lives, digital services have gained a lot of importance in our day. The taxation of these services has become an important topic of discussion in recent years. The digital service tax is a tax on the activities of digital service providers in countries. This tax aims to balance the contribution of digital services to national economies. Unlike other tax types, digital service tax only covers digital service providers. Applying this tax differs between countries and causes various disputes between countries.

"Digital Service Tax" refers to article 52 (a) of Law No. 7194, dated 5/12/2019, which governs the Digital Service Tax, some other laws, and Decree-Law No. 375. It is defined between articles 1 and 7 of that Law. It became effective on March 1, 2022, in accordance with the paragraph.