Tapsi announced in a statement that it was required to pay VAT. According to the decision of the Tax Dispute Resolution Board, the online taxi service must pay the VAT arrears since 2021.
According to Ideaagency, after the Tax Affairs Organization did not consider online taxis to be subject to the exemption clause from value-added tax, This internet taxi tried to pursue this tax exemption through various legal authorities, but in the end, the company’s efforts, like its competitor’s, were unsuccessful.
On March 1, the Tax Appeals Board of the Taxpayers’ Office sent a notification to the Tapsi, requiring the company to pay value-added tax for four periods of the year 2021, including spring, summer, fall, and winter.
Also, according to the ruling issued by the Tax Appeals Board and the previous ruling of the Administrative Court of Justice, the dispute related to Tapsi‘s VAT is considered settled; therefore, the aforementioned procedure will also be valid for the VAT of the past years that have not been settled and will be applied to the company’s accounts.
It is recalled that according to Article 9, Paragraph (b) of the value-added-tax Law, transportation services (including freight and passengers) within, outside and international cities, by road, rail and sea, are exempt from this type of tax. However, the Tax Affairs Organization believes that this exemption does not include providers of ancillary transportation services, including online taxis.
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