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The Supreme Constitutional Court declared on 14 October 2012 that retroactive sales tax decrees unconstitutional . The general rate for sales tax under Law No. 11 of 1991 is10%, with special rates for some commodities and services. Since services were subjected to the sales tax by various presidential decrees and not by law, the parliament issued an amendment to Law 11 to ensure that the services and sales tax rates imposed thereon by presidential decrees continue to be valid. Law No. 2 of 1997 applied the sales tax retroactively from the date of issuing the presidential decrees. The Supreme Court ruling will apply to taxpayers who still have open sales tax disputes for the years 1992–1997 before the courts.
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