Image Credits - Nike
Nike Inc. has announced the suspension of its online sales in Turkey, affecting both its website and mobile app. This decision follows a recent overhaul of Turkey’s customs tax regulations, which has dramatically altered the landscape for international online purchases.
The suspension comes shortly after Turkey implemented new customs rules that drastically increased tax rates and reduced the threshold for tax exemptions on goods purchased from abroad. Nike’s statement on its Turkish website explained, “Due to our inability to ensure timely and smooth delivery of orders, we are temporarily halting online sales in Turkey.” The company also noted that it is currently assessing how these new customs regulations impact the shopping experience for Turkish consumers.
The revised regulations have lowered the tax-free exemption limit for online purchases from abroad to 30 euros ($33) from 150 euros. Additionally, the tax rate on goods purchased from the European Union has risen to 30% from 20%, while the rate for items bought from other countries has increased to 60% from 30%.
Despite the suspension of online sales, Nike continues to operate its physical stores in Turkey and maintains its retail partnerships within the country. This move is part of a broader strategy by the Turkish government to address market share concerns, support local employment, and mitigate foreign currency loss, according to Trade Minister Omer Bolat, as reported by the state-run Anadolu Agency.
Nike’s decision underscores growing apprehensions among global retailers regarding the impact of changing tax policies and their effects on cross-border e-commerce. The company’s action reflects a broader trend of international businesses adjusting their operations in response to new regulatory environments.