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How to Trade Vehicles?
Buying a vehicle from abroad, especially from countries where vehicles are produced, seems quite advantageous on paper. This is because the extra fees are usually not well known. In this article prepared by our expert lawyers, we will examine all the advantageous and disadvantageous aspects of bringing a vehicle from abroad. Thus, we will try to find answers to questions such as “Can I use a vehicle from abroad?”, “How to bring a vehicle from abroad?”, “What should I do to bring a vehicle from abroad?”.
The steps to be followed by those who want to bring a car from abroad are as follows:
1. In order for the vehicle to be brought in, firstly, an invoiced purchase must be made from a foreign country.
2. The vehicle brought to Turkey must be brought to customs.
3. Payments such as SCT and VAT must be made to get the car from customs. SCT is calculated on the tax-free price of the vehicle. VAT is paid after all the fee calculations are made and is 18% of the total amount.
4. In addition, due to procedures such as customs clearance, various import payments may be required depending on the type or price of the vehicle.
5. After payment, the registration and license plate of the vehicle must be issued.
Finally, we need to make an addition. Many European countries do not charge VAT if you buy a vehicle and take it out within a few days via transportation.
However, if you want to use the vehicle to take it out of the country or transport it after 1 month, you must pay the VAT amount determined by the country where you made the purchase.
Since you will also pay VAT in Turkey, you will pay VAT twice in total. In addition, if the vehicle is used in that country, in addition to VAT, other taxes similar to the MTV in Turkey must also be paid.
The first detail that should be mentioned about the VAT and SCT calculations for 2024 is that the SCT rates are determined on the raw value and the VAT rates are determined after the SCT is added. In other words, while Special Consumption Tax is calculated based on the tax-free value of the vehicles, Value Added Tax is calculated on the value resulting from “tax-free value + Special Consumption Tax”. Value Added Tax has a rate of 20 percent, while SCT varies depending on the cylinder volume and price.
On August 13, 2022, a change was made in SCT rates with the Official Gazette published on August 13, 2022. SCT rates that will be valid in 2024 with the update;
SCT rate of 45% for vehicles with an engine cylinder volume not exceeding 1600 cm³ and a base value of up to 184 thousand TL
The SCT rate for vehicles with an engine cylinder volume not exceeding 1600 cm³, with a tax base between 184 thousand TL and 220 thousand TL is 50%.
The SCT rate for vehicles with an engine cylinder volume not exceeding 1600 cm³ and a tax base between 220 thousand TL and 250 thousand TL is 60%.
The SCT rate for vehicles with an engine cylinder volume not exceeding 1600 cm³ and a tax base between 250 thousand TL and 280 thousand TL is 70%.
The SCT rate for vehicles with an engine cylinder volume not exceeding 1600 cm³ and a tax base of over 280 thousand TL is 80%.
The SCT rate for vehicles with an engine cylinder volume between 1600 cm³ and 2000 cm³ and a tax base up to 170 thousand TL is 130
The SCT rate for vehicles with an engine cylinder volume between 1600 cm³ and 2000 cm³ and a tax base over 170 thousand TL is 150
The SCT rate for vehicles with an engine cylinder volume above 2000 cm³ and with no limit on the tax base has been updated as 220%.
VAT is kept constant at 20%.
For this reason, it is much more advantageous to transport the vehicle by land or sea.
In short, the conditions for buying a car from abroad are very different from buying a car from any dealer or person in the country.
Many items in the legislation on bringing a vehicle from abroad mean extra payments. For this reason, it is generally not recommended for those who are not particularly interested in a vehicle.
It is slightly different for people already living abroad to bring their own foreign-registered vehicle to Turkey.
Since the vehicle owner does not have to pay any tax, there are various conditions. Most importantly, the vehicle must be brought temporarily.
In other words, if it is to be brought permanently, some taxes must be paid. Therefore, the vehicle can stay within the borders of the Republic of Turkey for a certain period of time. Other conditions are as follows:
You must be abroad for 185 days of the last 1 year. This period is determined according to your residence document.
The brought vehicle can be used in the country for a maximum of 730 days.
The vehicle cannot be used by anyone other than the owner.
Vehicles brought to Turkey temporarily cannot be sold, rented or transferred.
It is necessary to make a point here. You do not need to be abroad for 185 days continuously. In other words, it is enough to be abroad for 185 days in a year in parts.
What are the Conditions for Buying a Car from Abroad with Free Import?
Another method is to purchase a foreign license plate vehicle duty-free and register it in Turkey.
Generally, this method is called “buying a vehicle with foreign license plates”. However, in reality, it is called “free import”. The conditions are as follows:
People who have lived outside Turkey for 2 years and will move their residence back to the country can benefit.
For public employees sent abroad by the Republic of Turkey to fulfill a duty, the 2-year requirement is not sought.
Persons who will acquire Turkish citizenship and move their residence permanently within the borders of Turkey are not subject to the 2-year requirement.
In case of the death of a citizen of the Republic of Turkey living abroad, his/her heirs who are citizens of the Republic of Turkey and live within the borders of Turkey can bring the vehicle.
People who retired abroad can bring their vehicles.
People who meet these conditions do not pay taxes at customs for the vehicles they bring. However, taxes such as SCT and VAT are collected from the user.
People who work abroad temporarily (e.g. construction workers, hotel workers, ship crews or supervisors, etc.) usually do not have residence permits in the countries they go to. Therefore, it is not possible for them to bring a vehicle.
Finally, someone other than the owner can bring the vehicle. However, the person who will bring the vehicle must be given a power of attorney by the vehicle owner.
In addition, both the vehicle owner and the person who will bring the vehicle must have spent 185 days abroad in the last 1 year.
Now that we have explained how to bring a vehicle from abroad, we can answer frequently asked questions.
Which Countries Can Vehicles Be Brought to Turkey?
With the import method, drivers can bring vehicles from any country they wish. Those who will bring vehicles with the free import method can bring vehicles from their country of residence if they meet the above-mentioned conditions.
In this case, there is an exception for persons residing in the European Union and the European Free Trade Association. Persons residing in EU and ETSU countries,
EU and ASTB members can import vehicles with the license plates of another country to Turkey free of charge.
How to Bring a Car from Abroad with a Disability Report?
The Republic of Turkey grants many rights to the disabled as a requirement of being a social state.
Among these is the purchase of vehicles without SCT. In Turkey, a disabled citizen can buy a new vehicle without SCT. He also does not pay MTV for his vehicle.
A disabled person who is entitled to buy a vehicle can also benefit from similar rights if they bring a vehicle from abroad. With the Customs Tax Law, items for the use of disabled people are exempted from customs duties.
Can Those Who Work Abroad Bring a Car to Turkey?
Any Turkish citizen who has lived outside Turkey for 2 years can bring his/her car to Turkey if he/she carries his/her residence. However, if public employees are sent abroad on duty, this condition is not required.
In addition, our citizens who have retired abroad can also bring their vehicles to Turkey and benefit from the right to import free of charge.
Can Someone Other Than the Owner Bring the Vehicle Purchased Abroad?
If a power of attorney is defined, another person can bring the vehicle to Turkey. However, the residence and registration information of both the owner of the vehicle, the vehicle and the person given power of attorney must be abroad. Otherwise, according to the rules, only the registered driver can use the vehicle.
What is a Preliminary Statement on Bringing a Car from Abroad?
Persons residing abroad should make a preliminary declaration via e-Government if they are coming to Turkey with their vehicles. With the preliminary declaration, entry procedures are accelerated and waiting times are significantly reduced.
Which Documents Are Required from You When Entering Turkey by Car from Abroad?
-Ownership Certificate (License) showing that the vehicle is registered in the country where the person bringing the vehicle to Turkey is resident
-Driver’s License of the person who brought the vehicle to Turkey
-Passport or passport substitute identity document of the person who brought the vehicle to Turkey
-A document showing that the person who brought the vehicle to Turkey lives abroad: In some cases, the customs office may want to make sure that the person is living abroad. In this case, in addition to the identity document or passport, a residence permit must also be presented to the customs office.
-A traffic insurance policy valid in Turkey.
-For those who have retired abroad, a Turkish translation of the pension certificate certified by the consulate or embassy.
-Where necessary, a valid power of attorney or rental agreement,
-In cases where a vehicle registered in the name of a company, not in the name of an individual, a Turkish translation of the document showing that the person bringing the vehicle is a partner or employee of the company, certified by a notary public or consulate.
What is Import, How to Perform Import Transactions?
Imports or imports, in its simplest definition, can be defined as the purchase of goods from another country and bringing them into the country. Imports can be made within the framework of the system of rules called “free circulation entry regime” in customs legislation.
What is the Free Movement Regime?
In order for a good to enter free circulation, it is not sufficient only to pay the import duties; it is also necessary to apply the trade policy measures applicable to that good and to complete the other procedures foreseen for the import of the good.
Who can import vehicles from abroad?
Any natural and legal person who has been issued a tax number in accordance with the provisions of the Tax Procedure Law and partnerships of persons authorized to make legal disposals in accordance with the provisions of the legislation in force can carry out import transactions.
Persons who do not have a tax number can obtain a tax number by applying to the tax offices of the Ministry of Treasury and Finance. In order to be able to import, it is not necessary to obtain a special permit or document that entitles one to import.
Can Used Goods be Imported?
It is essential that the goods to be imported into Turkey are new and unused.
According to the Import Regime Decree published by the Ministry of Trade, which determines the rules and principles regarding imports to Turkey, in order to import all kinds of old, used, reconditioned, defective (defective) and flat (lost its durability over time) goods into our country, it is necessary to obtain permission from the Ministry of Trade General Directorate of Imports and to submit the permission obtained to the customs office during import procedures.
What is a Good Subject to Import Permit?
Some goods require a permit to be imported into Turkey. Such goods are referred to in customs and foreign trade legislation as “goods whose import is subject to authorization or conformity inspection”. International agreements and foreign trade policy determine which goods are subject to import permits or compliance inspections. These inspections are carried out by different institutions and organizations.
When starting to import, after determining the Customs Tariff Statistics Position Number, it is vital for the importation of goods to obtain up-to-date information on whether you are required to obtain a permit, license, certificate of conformity or qualification certificate from any institution or organization for the importation of your goods to Turkey.
What are Import Taxes? How are Import Duties Calculated?
Import duties to be paid at customs administrations are specified in Customs Law No. 4458 3- 8/9.
The term “customs duties” means all of the import duties or export duties imposed on the goods in accordance with the relevant legislation;
“Customs obligation” means the obligation of the obligor to pay customs duties;
The term “import duties”,
a) Customs duty and other co-effective taxes and financial burdens to be paid on the import of the goods,
b) Taxes and other financial burdens to be levied on imports within the framework of agricultural policy or special regulations applied to certain products obtained as a result of the processing of agricultural products;
The types, rates and amounts of taxes to be paid during importation will be determined as a result of the inspection and determination of the tariff classification, origin and value of the goods to be imported by the customs administration.
The date of registration of the customs declaration is taken as the basis for the customs duty rate and exchange rate to be applied during importation.
The obligation to pay customs duties arising from imports starts on the date of registration of the customs declaration. The taxes to be paid are calculated according to the elements of the customs tariff valid on the date of registration of the customs declaration.
Import Safeguard Measures (Trade Policy Defense Instruments-TPSA)
In the event that a good is imported in increasing quantities and conditions in such a way as to cause serious damage or threat of serious damage to domestic producers producing similar or directly competing goods, in order to eliminate this damage or threat of damage, safeguard measures are taken within the scope of the procedures and principles regarding the adoption of safeguard measures, taking into account international obligations and national interest, provided that they are limited to the damage or threat of damage in question and are temporary.
What are the Documents Required for Imports?
In order to learn the documents that must be submitted to the customs administration in the import of the goods, Customs Tariff Statistics Position (GTIP) information is needed as in the stage of learning the tax of the goods.
It is necessary to investigate whether the customs administration requests the documents such as prohibition, permit, quota, specialized customs application etc. restrictions on the entry of imported goods into the country and the standards to which it is subject, warranty certificate, surveillance certificate, control certificate, health certificate, analysis report, CE certificate, and if any, it is necessary to make preliminary preparations within this framework. Support can be obtained from a customs broker to access this information.
You can access the information for company incorporation from our Procedures for Foreigners to Establish a Company in Turkey article.
After the establishment of the company and the completion of the necessary permits and licenses, there is no obstacle to export-import vehicles from abroad by establishing a company.
General information about the trade of vehicles brought from abroad:
As communication and transportation facilities develop, interest in export and import activities between countries increases. One of the most important requirements for exporting and importing is the establishment of an export or import company. The establishment of these companies is not as difficult as one might think. Anyone who desires can engage in import and export activities if they fulfill the requirements. People who want to carry out export and import activities should first decide whether the company they will establish should be a private individual company or a capital company. Individual companies are divided into two main types: sole proprietorship and ordinary company. A sole proprietorship is a form of company that is managed and controlled by a single person, who is also the sole owner of the business. An ordinary company is the simplest form of company, with no existence separate from the owner. Similarly, capital companies are divided into limited liability companies and joint stock companies. A limited liability company is a type of company established by one or more legal or natural persons coming together. A joint stock company is a form of company that is governed by majority rule in the boards and has all the characteristics of a capital company.
First of all, the type of company to be established and the address of the workplace should be determined. This address can be a real office, a virtual office or a home office. Afterwards, it must be registered with the tax office and the chamber of commerce. Then, if it is planned to employ workers in the company to be established, it should be registered with the Social Security Institution. In addition, a license to open a workplace and employ workers is obtained from the municipality for the company to be established. Then there is a final process to be done in order to export or import. Both newly established companies that will carry out import and export activities and companies that have been established in the past and will carry out export or import activities for the first time must register with the Importers’ Association if they will import and with the Exporters’ Association if they will export.
After this point, the company will be officially established within a few business days and import and export activities can begin.
When conducting foreign trade, it is necessary to issue different documents than the documents used in domestic commercial activities. These documents are bill of lading, check list, ATR.1 certificate and certificates of origin. Preparing these documents regularly and keeping them in the archive can be used to solve problems that may arise in the future.
Why Us?
Bringing vehicles from abroad to Turkey and trading vehicles is a complex process that needs to be managed meticulously. In addition to numerous tax obligations such as customs, SCT and VAT, it is also necessary to comply with import and trade regulations. The smallest mistake in these processes can lead to serious costs and legal problems. Therefore, it is of great importance to get support from a specialized lawyer. A lawyer will provide you with the right guidance throughout the process, ensure that the necessary documents are prepared, make tax calculations and prevent possible legal obstacles. They will also inform you about the differences in international legislation and legal obligations in Turkey that may be encountered in import and trade transactions. Therefore, getting legal support can save time and help prevent financial losses.
With more than 25 years of experience, Güneş & Güneş Law Office provides comprehensive legal services to its clients with its team of lawyers specialized in bringing vehicles from abroad. Our office provides consultancy with its expert team of lawyers to minimize the legal and commercial risks that may be encountered at every stage, and ensures that your import transactions are completed quickly and smoothly. Güneş & Güneş Law Office, which is familiar with tax and customs legislation in both individual and commercial import processes, produces professional solutions to secure the rights of its clients and guide them through complex procedures.
