Turkish government increases fees and VAT rates for IP services
The Turkish government has announced increases in official fees and VAT rates. Effective from 8 July 2023, all official fees, including those charged by the Turkish Patent and Trademark Office (TPTO), have increased by 50%. Additionally, as of 10 July 2023, the main VAT rate for various goods and services went from 18% to 20%, while the secondary VAT rate rose from 8% to 10%.
Increase in official fees for trademarks and patents
In accordance with Presidential Decrees 7344 and 7346 published in the Official Gazette on 7 July 2023, the Turkish government implemented a 50% increase in governmental official fees. Both this and the increase in VAT rates have resulted in adjustments of the fees charged by the TPTO to the official fees for the Electronic Patent and Trademark Application System application. This has been updated to reflect the revised fee structures and VAT rates in relation to IP applications and post-application procedures.
Adjustment of VAT rates
Under the same decrees, the previous VAT rate of 18% was raised to 20%, which will impact various sectors, including trademark and patent-related services. This increase aims to aid the country's economic stability and align with changing market dynamics.
Impact on businesses
The increase in official fees for trademark and patent services and the adjustment of VAT rates will have significant financial implications for businesses operating in Turkey, as well as for foreign rights holders. It is crucial that companies review their budgets and financial strategies to accommodate these changes effectively. Adapting to the revised fee structures and VAT rates as reflected in the updated EPATS application will help businesses ensure compliance and avoid any potential penalties.
The Turkish government's recent announcement of an increase in official fees for trademark and patent services and the adjustment of VAT rates reflects its commitment to adapting to economic conditions. Relevant stakeholders should take proactive measures to assess the impact of these changes and adjust their financial strategies accordingly. Staying informed about revised fee structures will enable companies to successfully navigate the evolving business landscape in Turkey and maintain compliance with the new regulations imposed by the TPTO.
This is an Insight article, written by a selected partner as part of WTR's co-published content. Read more on Insight
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