Facebook to levy tax on local ads in Turkey
Turkish-based advertisers on Facebook lacking a valid Turkish value-added tax (VAT) identification number will be charged 18 percent on the value of advertising services as of April 1, the social media giant has announced.
“Due to a recent change in Turkish tax law, Facebook Ireland Ltd is now registered for VAT as a non-established entity in Turkey,” Facebook said in an undated help section for advertisers, according to state-run Anadolu Agency.
“If you were recently charged $100 because you reached your $100 billing threshold, the subtotal for the charge will be $100 in ad costs,” the company said.
“An 18 percent VAT will be added on top of that, so you’ll pay $118.00 in total for that charge [$100 + $18 = $118.00].”
It also urged advertisers to check their account settings and make sure that they have provided the ID if they have it.
Facebook has some 43 million users, while around 2.5 million small and medium-sized enterprises have business accounts on the social media outlet.