A new era in cigarette sales with credit cards.

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The Confederation of Turkish Tradesmen and Craftsmen (TESK) warned businesses that charge extra fees for cigarette sales made with credit cards.

COMMISSION CANNOT BE COLLECTED WHEN SELLING CIGARETTES WITH A CREDIT CARD

The extra fees demanded under the name of commission by some retail businesses for cigarette sales made with credit cards are causing grievances for both citizens and businesses that do not charge this fee. TESK took action to resolve the issue upon the request of the Turkish Federation of Grocers and Retailers.

CIRCULAR PREPARED

TESK, which asked the Ministry of Commerce and the Ministry of Treasury and Finance whether it is compliant with the legislation to charge fees under the name of service fee in the retail sale of cigarettes, prepared a circular based on the letters received from the ministries, warning all tradesmen and craftsmen.

CONTRACTS WILL BE TERMINATED FOR 1 YEAR

In the circular, it was pointed out that, depending on the response from the relevant ministries, member workplaces are obliged to accept payment requests made with bank cards or credit cards for the goods and services purchased by cardholders, and the following statements were included: "Member workplaces cannot request additional payment under the name of commission or similar due to the use of the card by the cardholder. In case of violation of this provision, it has been stated that the member workplace's contract with the organizations it has an agreement with will be terminated, and a new contract cannot be made for one year. Additionally, the sales of tobacco products are taxed according to a special tax base. The VAT for the sales of tobacco products to retail dealers is calculated by the taxpayers selling to the dealers, including the dealer's profit, and declared in the period when the delivery to the dealers is made."

ADDITION OF SERVICE FEE IS NOT POSSIBLE

According to the letter from the ministries, it was emphasized in the circular that VAT is not calculated in the deliveries of tobacco products to dealers, and therefore, it is not possible to add amounts under the name of "service fee" to the sales prices of tobacco products subject to special tax base application. It was reported that if an additional service is provided regarding tobacco products, VAT must be calculated and declared on the documents to be issued for this service.