After ÖTV Tax Change, Turkey Warns Auto Dealers Over Illegal Price Hikes

Following the Special Consumption Tax (ÖTV) regulation that took effect on July 24, 2025, Turkey’s Ministry of Trade has issued a stern warning to car dealerships amid a surge in consumer complaints about unauthorized tax charges.

Consumers Asked to Pay Extra Despite Pre-Tax Purchases

The regulatory change, which modified the tax rates and base values for vehicles, has triggered widespread disputes. Although many consumers had paid in full or signed contracts prior to July 24, some dealerships demanded additional payments, citing the new ÖTV and VAT rules.

Reports submitted to the Ministry allege that these dealers failed to pay ÖTV and VAT on behalf of the buyer, demanding extra cash from customers instead—a violation of tax regulations, according to the Ministry.

Ministry: “If You Paid, the Dealer Must Pay Your Tax”

In its official statement, the Ministry of Trade emphasized:

“If the buyer has paid the full vehicle price or relevant taxes (ÖTV and VAT) before the regulation took effect, the dealer is legally required to handle those tax payments on the buyer’s behalf.”

The Ministry stated that dealers demanding additional ÖTV payments without issuing invoices are operating illegally, and buyers cannot be held responsible for such practices.

Buyers Can File Complaints or Legal Action

Consumers who made full payments or paid taxes before July 24 and are being asked for additional money are advised to:

• File a complaint with provincial Trade Directorates

• Pursue legal action through the judiciary

The Ministry also declared that contract clauses requiring additional payment after July 24 are legally invalid if full payment was already made before the tax change.

Different Rules for Down Payment Buyers

However, consumers who only made a deposit or did not yet pay full taxes can legally be charged the updated ÖTV, as this situation does not violate the regulation.

Up to ₺684,214 in Fines Per Violation

To maintain market fairness and consumer rights, the Ministry said it will tighten inspections in the auto sector. Dealers found guilty of unfair commercial practices may face administrative fines of up to ₺684,214 per violation.

“There will be zero tolerance for dealers violating tax regulations or exploiting consumers,” the Ministry warned.

Clear Message from the Ministry of Trade

The Ministry concluded its statement with a strong commitment:

“Unauthorized vehicle sales and unfair commercial practices harming consumers will not be tolerated. All violators will be held accountable through full enforcement of administrative sanctions.”