20% VAT imposed on ChatGPT services for users in Türkiye
This illustration picture shows the AI (Artificial Intelligence) smartphone app ChatGPT surrounded by other AI Apps in Vaasa, on June 6, 2023. (AFP Photo)
Türkiye has announced plans to introduce a 20% value-added tax (VAT) on popular artificial intelligence tools like ChatGPT.
The new tax, which will apply to users of OpenAI’s ChatGPT, falls under Türkiye’s existing policy of taxing digital services.
The update will require local and international companies providing such AI solutions to adhere to the new VAT rules, impacting subscription costs for Turkish users.
OpenAI reportedly informed ChatGPT users on the new taxation in Türkiye via a email.
Türkiye expands tax net to include AI tools
The government’s decision is part of a broader strategy to increase tax revenues from digital and tech platforms.
By including AI tools in its tax net, Türkiye is signaling a shift toward regulating advanced digital services.
While this tax primarily affects direct purchases and subscriptions for tools like ChatGPT, it may also set a precedent for taxing other forms of AI-powered applications in the future.
As the Turkish government moves forward with this 20% VAT, users and tech companies operating in Türkiye may experience price adjustments, potentially impacting the affordability of AI-driven tools and services across the country.
