Special Consumption Tax Certification Service
Special Consumption Tax Certification Service… SCT which means ”Special Consumption Tax” is essentially a sort of personal expenditure tax. This is a type of tax that is collected from the government on products or goods. The purpose of the SCT application in Turkey, the limits of which is determined by laws in accordance with the European Union, is to reduce the use of harmful substances. Therefore, the social benefit of the public is taken care of.
Special consumption tax (SCT) is a one-time tax on goods included in four separate lists attached to Law No. 4760. It is applied to many products and is similar to the “Immigration Tax” applied before. It first came to prominence with the amendments in the law made within the framework of harmonization with the European Union’s legislations. Then, it was substantially adopted in 2002 with the law numbered 1244.
Which Products are subject to SCT?
- Some luxury products (luxury cars, jewellery, luxury furniture, fur..)
- Products considered harmful to human health (tobacco, alcohol)
- Luxury white appliances
- Luxury products that harm the environment (gasoline, coal, folic acid).
Who is liable for SCT?
- Manufacturing and importing goods with tariffs I, III and IV and the products in tariff II that are not subject to registration, and the ones sold through auction
- Those who trade luxury motor vehicles, import them for use, or sell them through auction are liable for SCT.
What Does SCT Exemption Mean?
It refers to the exceptional situations where this tax will not be collected from products for which SCT is required. According to the temporary 7th article added to the SCT Law in 2016; Companies that carry out urban passenger transportation by taxi, minibus, minibus, bus, private and commercial cargo transportation companies by towing trucks and pickup trucks will be able to benefit from this exception. In addition, disabled individuals can benefit from this SCT exemption as well.
A few additional cases fall within the scope of the exception too. Such as; military exceptions, diplomatic exceptions, export exceptions, import exceptions, Turkish Aeronautical Association purchases exceptions, public institutions exceptions, petroleum exemptions and security enterprises’ arms purchases exceptions.
Payment Method of Special Consumption Tax
Special consumption tax is paid within the tax declaration period. Payment can be made through the banks which the tax offices have a payment agreement with.
What are the Differences Between SCT and VAT?
SCT and VAT are similar in some aspects. The most important feature that distinguishes these two from each other is that SCT is a single stage tax type. Imports are taken from the relevant goods only once during production or initial purchase. When these goods are transferred from one hand to another, SCT is not collected again.
SCT and VAT are sometimes confused with each other. SCT, which means special consumption tax, is a type of tax collected on the first sale of a good. VAT, which means value added tax, can continue to be paid in cases such as handovers, multiple sales or changes of the owner.
These are two types of taxes that also differ in terms of rate and application. VAT is an expenditure tax paid by the supplier of goods and services, but charged to the buyer on the delivery of goods and services. It ranges from 1% to 18%.
SCT, on the other hand, is a one-stage tax type and its scope is pretty limited. VAT is applied in a wider area. Plus, SCT rates are higher whereas VAT rates are relatively lower.
How is SCT Calculated? What are the Special Consumption Tax Rates?
There are many websites and mobile applications that easily calculate the tax amount and SCT discounted price of the vehicle you want to buy. With the calculation made according to the rate corresponding to the model and price of the vehicle, you can get an approximate amount of all taxes to be paid including SCT and VAT.
You can reach out to the current SCT rates and amounts at this link.
Features of Special Consumption Tax
It is easy to manage. Since the goods subject to SCT are limited, the number of SCT taxpayers is very less compared to the number of other taxpayers.
Limited in scope. SCT is collected over the goods according to the four tariffs stipulated in the SCT Law. Since every good and service should be legally disclosed, the scope of SCT is quite limited compared to other tax types.
Contribution to the Treasury is very high. The Treasury’s SCT revenues have a significant place in the general budget tax revenues. Considering that the number of taxpayers is less and its application area is limited, the importance of SCT in treasury revenues is remarkable.