Transport tax in Turkey (MTV) is a tax payment of a certain amount charged for a vehicle. This tax is calculated and charged 1 time per year by the Revenue Administration.

The transport tax is determined in accordance with the revaluation coefficient, depending on the level of emissions of vehicles, as well as the age and number of seats. The emission factor increases or decreases in proportion to the volume of engine power.

Accordingly, the lower the engine power of the car, the lower the amount of transport tax. Specialists of the Turkish Revenue Administration determine the amount of tax collections using special formulas that help to calculate taxes with maximum accuracy.

Transport tax in Turkey in 2020

Content:

1. Payment of transport tax
2. Calculation of transport tax in the Republic of Turkey
3. Buying a new or used vehicle in Turkey

Transport tax in Turkey

Fig.1 Transport tax in Turkey

Transport tax in Turkey (MTV) is a tax payment of a certain amount charged for a vehicle. This tax is calculated and charged 1 time per year by the Revenue Administration.

The transport tax is determined in accordance with the revaluation coefficient, depending on the level of emissions of vehicles, as well as the age and number of seats. The emission factor increases or decreases in proportion to the volume of engine power.

Accordingly, the lower the engine power of the car, the lower the amount of transport tax. Specialists of the Turkish Revenue Administration determine the amount of tax collections using special formulas that help to calculate taxes with maximum accuracy.

Payment of transport tax

Transport tax in the Republic of Turkey is paid in 2 equal installments annually. The first payment must be made during January, the second – by the end of July. According to the current amendments made to the legislative framework, it follows that from January 1, individuals have the right to pay the full amount of MTV in a lump sum through:

• virtual resource or cash desk of income management;
• Atms;
• branches of banking institutions and other contractual organizations.

If there is a debt on transport tax, then penalties begin to accrue from the first day of delay. In case of non-receipt of payment within the time limits established by the state, a bank pledge is opened in order to guarantee the repayment of receivables by the debtor.

Also, according to Turkish law, if there is a debt on the car to pay transport tax, then the vehicle cannot be sold. To travel by car, you must have valid insurance.

Calculation of transport tax in the Republic of Turkey

With the help of a special virtual calculator , you can roughly calculate the car tax in 2020. To do this, you will need to specify the following parameters: car brand, year of manufacture, age, engine size.

Until 2018, the motor vehicle tax was calculated at the revaluation rate of değerlendirme. After 2018, the transport tax increased by:

• 15 per cent for vehicles with an engine capacity of 1,300 cc;
• 25% for cars with an engine capacity of more than 1,300 cc.

The revaluation ratio for 2019 was 23.73%. According to the amended Presidential Decree, the revaluation rate used in the calculation of MTV has been reduced to 15.9%, and the transport tax in 2020 to 12%.

If there is a Ruh seat for the passenger on the back of vehicles that are called vans, the calculation of the car tax is made as a “panel van”.

Transport tax: rates in 2014-2020:

• 2020 – 12%;
• 2019 – 15.9%;
• 2018 – from 15-50%;
• 2017 – 3.83%;
• 2016 – 5.58%;
• 2015 – 10.11%;
• 2014 – 3.93%.

Buying a new or used vehicle in Turkey

Provided that a new car is bought and registered in the first half of the calendar year (January-June), then the first installment of the transport tax payable in January is included in the payment. If the purchase is made from July to December, then the MTV due in July is also included in the payment automatically.

When purchasing a used car, most often sellers offer to pay 25% in cash as a down payment, the remaining 75% can be issued in installments / loan for a billing period of 36 months (3 years). The amount of tax when buying a car in Turkey depends on the engine size of the vehicle.

If a mistake is made when paying the transport tax and the payment has not been credited to the tax account, then the refund process should be performed. In the case of a payment made through a bank card or a banking institution, the refund is made through an application submitted to the relevant banking institution.

If it is impossible to use this method, you will need to write an appeal to the tax service, to which the vehicle is assigned.