In 2020, the term “scrap vehicle ÖTV” refers to the Turkish Special Consumption Tax (ÖTV). ÖTV is a tax applied either as a percentage or a fixed amount on certain goods or products. Introduced as part of legislative alignment with the European Union, ÖTV has been in effect since 2002. The goal of this tax is primarily social benefit rather than revenue increase. ÖTV is applied to products such as alcohol, cigarettes, environmentally harmful fuels, jewelry, and fur. According to a statement by the President, the ÖTV reduction will be extended for a second time.
How Is the Vehicle ÖTV Reduction Calculated?
Consider a vehicle with a pre-tax price under 70,000 TRY. In such cases, the ÖTV rate would decrease from 45% to 30%. For vehicles priced between 70,000 and 120,000 TRY, the rate is expected to fall from 50% to 35%. For commercial vehicles, the standard 18% VAT rate was reduced to as low as 1%. White goods saw their ÖTV rate entirely removed. Furniture ÖTV was reduced from 18% to 9%. These reductions were announced to end on March 31 by the President.
What Disability Level Is Required on a Medical Report to Benefit from Vehicle ÖTV Exemption?
Individuals seeking an ÖTV exemption must obtain a medical report from a fully equipped state hospital. This report must indicate a disability rate of at least 90% to qualify for the exemption. Persons with orthopedic disabilities of 40% or greater must additionally confirm that their disability does not prevent them from using a vehicle equipped with special adaptations.
Can Relatives of Disabled Individuals Benefit from the Vehicle ÖTV Exemption?
No. The ÖTV discount is granted exclusively to the disabled person. Relatives or caregivers cannot use this exemption on their own behalf. The vehicle must be registered directly in the name of the disabled individual to qualify for the reduction.
Can Persons Under 18 Benefit from the Vehicle ÖTV Exemption?
There is no age restriction for those with a disability rate of 90% or higher. Eligibility is determined by the total loss of bodily function percentage rather than age.
What Should Be Considered When Applying for the Vehicle ÖTV Exemption?
If you plan to use the ÖTV exemption, note that a specific tax calculation will be performed for all passenger car models regardless of engine displacement. The total taxable amount, including all taxes, must remain below 303,200 TRY to qualify.
What Are the Conditions to Benefit from the Scrapping Incentive?
Vehicles eligible for the scrapping incentive must be at least 16 years old. Even if a vehicle is categorized as scrap, it cannot benefit from the incentive unless it meets the age requirement. Additionally, the scrapped vehicle must belong to the same category as the new vehicle being purchased.
Other conditions include:
- The vehicle submitted for scrapping must be complete: key components such as the body, transmission, and engine must be present.
- Multiple discounts cannot be combined for a single vehicle. Only one incentive may be applied per vehicle; combining incentives is not allowed.
What Are the Benefits of the Scrapping Incentive?
The scrapping incentive aims to remove older vehicles from the roads and encourage replacement with newer, more modern models. For a vehicle valued at 70,000 TRY, a payment of 15,000 TRY is provided. Vehicles valued between 70,000 and 120,000 TRY receive a payment of 12,000 TRY.
Which Vehicles Qualify for the ÖTV Discount?
Vehicles eligible for the ÖTV discount include buses, minibuses, ATVs, tractor units, passenger cars, and pickup trucks.
Where Should the Disability Report Be Obtained to Benefit from the ÖTV Discount?
The disability report must be obtained from a fully equipped state hospital. The disability rate must be 90% or higher to qualify for the discount.
Which Driving License Is Required to Use the ÖTV Discount?
Disabled individuals seeking the ÖTV discount are required to hold an H-class driving license.
Can Relatives of Disabled Persons Use the ÖTV Discount?
No. The discount is a personal right assigned only to the disabled individual. Family members or relatives cannot claim this benefit on behalf of the disabled person.