Internet advertising and taxation of internet advertising in Turkey

The growing importance of the internet as an indispensable part of the daily life, the spread of internet use in connection with the popularization of smart phones, tablets and portable devices, as well as interest in the social media platforms, led to significant changes in the traditional advertising and marketing methods and approaches. In an environment of intense and fierce competition, enterprises now prefer internet advertising over the traditional advertising because of its advantages. Internet advertising is a type of advertising through which the firms and enterprises convey their products and services to the end users online. The removal of physical barriers in the world of digital activities has raised problems in terms of how these advertising activities should be subjected to taxation. National authorities in Turkey, like similar bodies in other parts of the world, pay close attention to this problem and consider possibilities of identifying and levying taxation fees for digital advertising. Recent legal arrangements over the last two years to impose taxes upon internet advertising and digital services seek to ensure that the revenues generated through these activities are subjected to tax-payment and that undeclared revenues are officially recorded. These efforts aligned with the international initiatives. It should, however, be noted that it is necessary to remain prepared for the future changes and developments due to the constant change in the nature and content of digital services and internet, and the fast adaptation of the commercial life to the changes in technological advances.