Amendments In VAT Rates In Some Service Sectors

With the Decision of the President No. 2812 published in the Official Gazette dated 31.07.2020 and numbered 31202, VAT rates were amended in some service sectors.

As per the Provisional Article 6 added to the Decision No. 2007/13033 with the Decision of the President No. 2812, until 31.12.2020;

• VAT rates applicable to some Goods and Services have been decreased from 18% to 8%,
• VAT rates applicable to some Goods and Services have been decreased from 8% to 1%.

The related amendment has been effective as of 31/07/2020 and the actual determined rates will be applicable until 31/12/2020.

VAT rates to be applicable until 31/12/2020 for the following goods and services have been decreased from 18% to 8%;

• Workplace rental service,
• Congress, conference, seminar, concert, fair and amusement park entrance fees,
• Organization services provided in weddings, ballrooms and cocktail lounges,
• Barbering and hairdressing services along with the services provided in beauty salons,
• Tailoring and repair of tailoring for apparel and home textile products,
• Repair of shoes and leather goods and shoe dyeing services,
• Ironing services for dry cleaning, laundry, apparel and other textile products,
• Carpet and rug washing services,
• Maintenance and repair of bicycles, motorcycles and motor bikes (excluding materials),
• Maintenance and repair of consumer electronics products (TV, radio, CD / DVD players, home video cameras etc.) (excluding materials),
• Maintenance and repair of heating products used at home (water heater, bath boiler, combi etc.) (excluding central heating boilers) (excluding materials),
• Maintenance and repair of electrical household appliances (refrigerator, oven, washing machine, dishwasher, air conditioner etc.) (excluding materials),
• Maintenance and repair of home and garden equipment (excluding materials),
• Maintenance and repair of furniture and home furnishings (excluding materials),
• Maintenance and repair of computers, communication tools and equipment (except materials),
• Maintenance and repair of musical instruments,
• Locksmithing and key duplication services and porterage services,
• Lubrication, washing, polishing services of motor vehicles and maintenance and repair of their seats and upholstery (excluding materials),
• Residential maintenance, repair, painting and cleaning services provided to householders (excluding materials),
• Food and beverage services outside the scope of the 24th row of the “B) OTHER GOODS AND SERVICES“ titled section of the list number II with VAT attached and places with a first class restaurant license or business certificate along with the services provided in three star hotels and above, holiday resorts and similar facilities (Except for the portion of the services provided in these places that correspond to alcoholic beverages),
• Passenger transportation services,
• Flower delivery with ornamental plants

VAT rates to be applicable until 31/12/2020 for the following goods and services have been decreased from 8% to 1%;

• Cinema, theater, opera, operetta, ballet, museum entrance fees
• 24th row of the section of the “B) OTHER GOODS AND SERVICES” titled section of the list number II with VAT attached FOOD AND BEVERAGE SERVICES: Coffeehouse, tea house, tea shop, cafeteria, patisserie, bistros, places that sell food in the package or provide food service in other ways, restaurants, restaurants (where alcohol served), kebab shops and similar services. (Except for the portion of the services provided in these places that correspond to alcoholic beverages),
• Overnight services provided in hotels, motels, pensions, holiday resorts and similar accommodation facilities

Please click here to access the relevant decision.

You may contact your client representative to have further details on the subject.