In October 2011, the Turkish Tax Administration started publishing tax rulings on its website. Below are a couple of the rulings shared with the taxpayers through the website.

Tax Ruling No. 1
According to the Ruling of the Turkish Tax Administration dated July 8, 2011, commission paid by non-resident companies for brokerage services rendered to the liaison offices of such non-resident companies for the payment of miscellaneous expenses in Turkey shall be subject to VAT as such services have been provided in Turkey. 

Tax Ruling No. 2
A tax ruling dated April 19, 2011 regarding commission charges applicable to bank letters of guarantee in terms of VAT has been published by the Tax Revenue (the “Ruling”). According to the Ruling, VAT shall not be applicable over expenses and commission arising out of the bank letters of guarantee issued in favour of and delivered to suppliers.