TAXATION OF DIGITAL SERVICES IN TERMS OF COUNTRY PRACTICES

Today, technology is integrated with most parts of our lives which continues to develop. Forms

of activities have changed that are carried out in different areas, such as economy, health, security.

Especially developments in information and communication technology caused new business models to

form which are unusual and do not require physical presence. While these changes affected and

overimpressed global economy, new concepts and institutions are constituted as a need in taxation.

Companies maintain their economic activities on digital platforms by using internet which helps

companies to cross borders and get in contact with more customers, countries and other companies much

easier. On the other hand, present tax rules started to become insufficient since states were devoid of taxing the digital economy. At this point, OECD's Base Erosion and Profit Shifting (BEPS) provides basis to find

some solutions. Defining and detecting significant economic presence have importance in order to

determine taxable income. Since states could not come up with a common solution which requires

international cooperation, they started to apply different kinds of taxes as precautions in order to prevent

loss in tax. The idea of taxing digital services was put forward to tax activities that companies carry out via

digital platforms in terms of digital economy. In this study, digital economy and the relevant concepts will

be explained which are related with digital services. Then determined country practices about taxation of

digital services will be mentioned.