14November2018

Presidential Decree Numbered 287 Regarding the Applications of VAT, Special Consumption Tax and Deed Fees

According to the Presidential Decree numbered 287 which was published in the Official Gazette dated 31/10/2018 and numbered 30581, a resolution is taken regarding the discounts to be implemented in VAT (KDV), Special Consumption Tax (ÖTV) and deed fees between the dates of 31/10/2018 - 31/12/2018.

VALUE ADDED TAX (VAT)

As per to the 2007/13033 numbered Council of Ministers Decision, a provisional clause is amended with the 2018/11674 numbered Decision. Within the scope of the Article 3 of the provisional clause on the relevant decision, it has been announced that the VAT ratio which had been 18% is set to be as 8% for the residences, delivered between 5/5/2018 - 31/10/2018. Within this scope, another amendment has been made and the VAT value for workplaces which was 18% has also been revised and is defined to be as 8% between the dates of 5/5/2018 - 31/10/2018.
Furthermore, as per to the Presidential Decree numbered 287, the Provisional Clause has been revised and the VAT ratio which has been revised and the application of the 8% VAT on the delivery of residences and workplaces has been extended until the date of 31/12/2018.
On the delivery of furnishing goods, as per to the Presidential Decree numbered 287, the VAT to be applied is amended from 18% to 8% until 31/12/2018.
As per to the Presidential Decree numbered 287, the VAT to be applied on the commercial automotive (including previously owned automotive which are mentioned on the Turkish Customs Tariff Schedule numbers ;8701.20 - 87.02 - 87.04 and 87.05) the VAT to be applied is amended from 18% to 1% until 31/12/2018. This shall be applicable for all automotive machinery excluding standard autos.

DEED FEES

Under the amendment made by Presidential Decree numbered 287; deed fees requested during sales and purchases of residences and workplaces will be charged as a total of 3% until the date 31/12/2018, instead of 4%. Deed fees of sales and purchases concerning lands and estates will be continued as a total of 4%.

SPECIAL CONSUMPTION TAX

With the Presidential Decree numbered 287, Special Consumption Tax (ÖTV) ratio charged from commodities which are juxtaposed in (TABLE NUMBERED 3) is lowered to zero from 6.7% between the dates of 31/10/2018 - 31/12/2018.

Author Selma Kıy, Category Taxation Law

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