Social Media Advertisements are Going to the Tax Office

Details of the Regulation

With the amendment made to the General Communiqué on the Tax Procedure Statute No. 538, the scope of the reporting obligation has been expanded in order to ensure tax compliance in digital environments. Not only e-commerce platforms, but also access providers, content providers, hosting providers, and social network providers that enable purchase, sale, rental, advertising, and promotional activities in all digital environments, including the internet, are now required to provide information to the competent authority.

Under the new regulation, platforms that enable the publication of advertisements for the sale or rental of movable and immovable property and services, namely hosting providers and social network providers, must report the transactions they carry out electronically to Gelir İdaresi Başkanlığı in one-month periods throughout the calendar year. These reports will include the internet addresses on which the advertisements are placed, the identity/tax information of the persons placing the advertisements (TCKN/VKN/YKN), and the details of the sale or rental to which the advertisement relates.

The communiqué entered into force on its date of publication and aims to combat the informal economy in digital media and prevent tax losses arising from advertisements for used vehicles, immovable property, or rental properties. The relevant platforms have assumed administrative responsibility for providing a regular monthly flow of data.