30Temmuz2021

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 published on the Official Gazette numbered 31499 and dated 02.06.2021; the date of 31.05.2021 was 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.

With Presidential Decree published on the Official Gazette numbered 31553 and dated 30.07.2021; the date of 31.07.2021 is amended as 30.09.2021 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 30.09.2021.

VAT rates to be applicable until 30.09.2021 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 30.09.2021 for the following goods and services have been decreased from 8% to 1%;

Cinema, theater, opera, operetta, ballet, museum entrance fees,
24^th 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 30.09.2021.

Overnight services provided in hotels, motels, pensions, holiday resorts and similar accommodation facilities will have 1% VAT rate applied until 30.09.2021,

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

You can access the related Official Gazette from here (in Turkish).

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

Yazar Selma Kıy, Kategori Taxation Law

Notification!

The content in this article is for general information purposes only and belongs to CottGroup^® member companies. This content does not constitute legal, financial, or technical advice and cannot be quoted without proper attribution.

CottGroup^® member companies do not guarantee that the information in the article is accurate, up-to-date, or complete and are not liable for any damages that may arise from errors, omissions, or misunderstandings that the information may contain.

The information presented here is intended to provide a general overview. Each specific case may require different assessments, and this information may not be applicable to every situation. Therefore, before taking any action based on the information provided in the article, it is strongly recommended that you consult a competent professional in the relevant fields such as legal, financial, technical, and other areas of expertise. If you are a CottGroup^® client, do not forget to contact your client representative regarding your specific situation. If you are not our client, please seek advice from an appropriate expert.

To reach CottGroup^® member companies, click here.