Discounted VAT Rates in Some Service Sectors Have Been Extended

With Presidential Decree No. 2812 published in the Official Gazette dated 31.07.2020 and numbered 31202, VAT rates have been amended in some service sectors.

With Presidential Decree No. 3318, the date of 31.12.2020 has been amended as 31.05.2021 in the 6th provisional article.

With Presidential Decree published on the Official Gazette No. 31499 on 02.06.2021; the date of 31.05.2021 is amended as 31.07.2021 in the 6th provisional article of the Decision on Determination of Value Added Tax Rates to be Applied for Goods and Services.

Accordingly,

• 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% until 31.07.2021.

VAT rates to be applicable until 31.07.2021 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 mopeds(excluding materials),
• Maintenance and repair of consumer electronics products (TV, radio, CD/DVD players, home video cameras etc.) (excluding materials),
• Maintenance and repairing of heating products used at home (water heater, bath boiler, combi etc.) (excluding central heating boilers) (excluding materials),
• Maintenance and repairing of electrical household appliances (refrigerator, oven, washing machine, dishwasher, air conditioner etc.) (excluding materials),
• Maintenance and repairing of home and garden equipment (excluding materials),
• Maintenance and repairing of furniture and home furnishings (excluding materials),
• Maintenance and repairing of computers, communication tools and equipment (except materials),
• Maintenance and repairing 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, repairing, 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" section of the VAT attached list II, places that have a first-class restaurant license or operating certificate, and restaurants within the scope of hotels, holiday villages and similar facilities with three stars and above services provided in the premises (except for the portion of the services provided in these places for alcoholic beverages),
• Passenger transportation services,
• Flower delivery with ornamental plants

VAT rates to be applicable until 31.07.2021 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 "B) OTHER GOODS AND SERVICES" section of the VAT attached list II, 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),

Discounted rates will be applicable until 31.07.2021.

• Overnight services provided in hotels, motels, pensions, holiday resorts and similar accommodation facilities will have 1% VAT rate applied until 30.06.2021,
• Added value tax to be applied between 1 September 2020 and 30 June 2021 (including these dates) is %1 for universities, colleges and education and training services provided within the scope of Private Education Institutions Law No. 5580, Social Services Law No. 2828 and Decree Law No. 573 on Special Education.

You can access our previously published article on the subject from here.

You can find the Presidential Decree from here.

Should you have any queries or need further details, please contact your customer representative.