What is ÖTV (Special Consumption Tax)?
ÖTV (Özel Tüketim Vergisi, Special Consumption Tax) is Türkiye’s single-stage excise tax under Law No. 4760, levied once: at import or first delivery by the producer: on four lists of goods annexed to the law. Unlike VAT, it does not apply at every stage of the chain; but it enters the VAT base, so VAT is calculated on the ÖTV-inclusive price, compounding the burden.
The four lists
List I covers petroleum products, natural gas and solvents (fixed amounts per unit); List II covers motor vehicles, where rates vary by engine size, type and: for EVs: motor power and value, which is why Turkish car prices diverge so sharply from European ones; List III covers alcoholic beverages, cola drinks and tobacco (with minimum fixed taxes); List IV covers a broad range of consumer goods including mobile phones, white goods, electronics, cosmetics and caviar.
Why tech companies meet it
Any business importing devices: phones, tablets, consoles: prices ÖTV into its unit economics. Rates and fixed amounts change frequently by Presidential decision within statutory bands, so a hardware business plan needs a live tax assumption, not a constant. E-commerce sellers of List IV goods, EV importers and fuel-adjacent logistics models all carry ÖTV exposure at the border, and the tax is due at customs alongside import VAT.
Who is liable for ÖTV
Under Article 4 of Law No. 4760, for goods in Lists I, III and IV the tax is paid by the manufacturer or importer. For List II vehicles subject to registration, the taxpayers are motor vehicle dealers, persons importing for their own use and those selling by auction; for List II vehicles not subject to registration, the manufacturer and importer are again the taxpayers. Because the tax arises at a single link of the chain, a retailer that later buys and resells a listed product is not an ÖTV taxpayer: it carries the tax within the price.
Tax periods and returns
Periods depend on the list (Article 14). For List I, the first fifteen days of each month and the remaining days are separate periods, and the return is filed on the tenth day following the period. For Lists III and IV, and for List II goods not subject to registration, the period is the calendar month and the return is filed by the evening of the fifteenth day of the following month. For vehicles subject to registration, the tax arises on first acquisition and is declared and paid before registration.
Tax base and the VAT interaction
For List I the tax is a fixed amount per unit; for List III a proportional rate applies together with a minimum fixed amount; for Lists II and IV the base consists of the elements that make up the VAT base (Article 11). Under Article 24 of VAT Law No. 3065, ÖTV is included in the VAT base: ÖTV is calculated first and VAT is charged on that amount. This is why the tax burden in a device’s shelf price is higher than the sum of the two rates.
Is ÖTV refundable like VAT?
Generally no: it is a cost, not a transit item. Limited exception and refund regimes exist (e.g. certain exports, disabled-driver vehicle exemptions, diplomatic exemptions), each with strict conditions.
ÖTV vs. VAT: quick contrast?
VAT is multi-stage, creditable and broadly neutral for businesses; ÖTV is one-shot, non-creditable and product-targeted. On a taxed product you effectively pay both, with VAT computed on top of ÖTV.
Related: KDV (VAT).