It is planned that a part of the accommodation tax will be reflected to the tourist
The Services Exporters’ Association (HİB) Tourism and Travel Services Sector held a series of meetings in Ankara, where they presented various demands to the Ministry of Treasury and Finance and the Ministry of Trade. The delegation focused on key issues affecting the tourism sector, particularly the restructuring of accommodation tax and addressing problems with the taxation of gratuities (tips).
Taxation of Gratuities:
The delegation highlighted issues related to gratuities received by employees in the food and beverage sector. They pointed out that when tips were included in payments made by credit card, they become subject to corporate tax as taxable income for the business.
Moreover, Value Added Tax (VAT) must also be applied, which creates an additional financial burden for businesses and reduces employees’ earnings. This issue is particularly problematic for businesses with turnover-based rental agreements, as including tips inflates the turnover, leading to increased rent payments. HİB requested that gratuities be exempted from taxes and not included in the turnover calculation. Minister Bolat expressed support for these demands and forwarded them to the Ministry of Treasury and Finance for consideration.
Accommodation Tax:
HİB argued that the current proportional (ad valorem) accommodation tax creates a heavy burden on the tourism sector. They advocated for a fixed (flat) tax instead, which they believed would alleviate pressure on the industry. Hediye Güral Gür noted that, unlike global examples of city tax, where a fixed amount is charged to guests, Turkey’s proportional tax placed an unfair load on hotels. The delegation proposed that a flat-rate accommodation tax, similar to those seen globally, be introduced. The Ministry of Treasury and Finance agreed to review this proposal.
DFIF Budget and Support Requests:
During the meeting, HİB also called for a share of the 2025 budget from the State Aid Fund (DFIF) to be allocated to the Tourism and Travel Services sector. The delegation emphasized the need for this budget to support trade and branding activities, including advertising, promotion, marketing, participation in international fairs, and certification and accreditation support similar to that provided in medical tourism. They requested that these initiatives be covered under the decision related to the definition, classification, and support of service exports as stipulated in Law No. 5448.
Sectoral Meetings:
In their meetings with the Ministry of Treasury and Finance, the HİB delegation discussed the issues of gratuities and accommodation tax with senior officials. They reiterated the importance of exempting gratuities from taxes and excluding them from turnover calculations for rent purposes. Additionally, they emphasized that rising labor costs were putting pressure on businesses, making it crucial to reconsider current gratuity practices.
Attendees:
The meetings were attended by Hediye Güral Gür, HİB Board Member and President of the Tourism and Travel Services Sector, Mehmet Erdoğan, HİB Board Member and Vice President of the Sector Committee, Banu Dedeman, Sadettin Cesur, Ogün Dönmez, and HİB Secretary General Dr. Fatih Özer. Following the meetings, there was optimism that the Ministry of Treasury and Finance would take positive steps in response to these requests.
In summary, the discussions centered around critical issues for the tourism sector, such as gratuity taxation and accommodation tax. The proposals aimed at easing the burden on the sector have been submitted for review by the Ministry of Treasury and Finance.
