Introduction:
The Turkish Government has recently announced[1] certain increases in official fees and the Value Added Tax (VAT) rates. Effective from July 8, 2023, all official fees, including those charged by the Turkish Patent and Trademark Office, have undergone a 50% increase. Additionally, as of July 10, 2023, the VAT rate for various goods and services is raised from 18% to 20%, whereas others were raised from 8% to 10%.
Increase in Official Fees for Trademarks and Patents:
In accordance with Presidential Decrees Numbered 7344 and 7346, published in the Official Gazette dated July 7, 2023, the Turkish Government has implemented a 50% increase in governmental official fees. This and the increase in the VAT rates have resulted in adjustments of the fees charged by the Turkish Patent and Trademark Office to official fee amounts within the EPATS (Electronic Patent and Trademark Application System) application. The EPATS application has been updated to reflect the revised fee structures and VAT rates in relation to industrial property applications and post-application procedures.
Adjustment of VAT Rates:
Under the same Presidential Decree, the previous rate of 18% has been raised to 20%, impacting various sectors, including trademark and patent-related services. This increase in VAT aims to contribute to the country’s economic stability and align with changing market dynamics.
Impact on Businesses:
The increase in official fees for trademark[2] and patent[3] services, as well as the adjustment of VAT rates, will have financial implications for businesses operating in Türkiye as well as for foreign IPR holders. It is crucial for companies to review their budgets and financial strategies to accommodate these changes effectively. Adapting to the revised fee structures and VAT rates, as reflected in the updated EPATS application, will help businesses ensure compliance and avoid any potential penalties.
Conclusion:
The Turkish Government’s recent announcement of an increase in official fees for trademark and patent services, as well as the adjustment of VAT rates, reflects its commitment to adapting to economic conditions. It would be advisable for relevant stakeholders to take proactive measures to assess the impact of these changes and adjust their financial strategies accordingly. Staying informed about the revised fee structures, as indicated in the updated EPATS application, will enable companies to navigate the evolving business landscape in Türkiye successfully and maintain compliance with the new regulations imposed by the Turkish Patent and Trademark Office.
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[1] https://www.resmigazete.gov.tr/eskiler/2023/07/20230707-11.pdf