VAT Rates for Some Goods and Services Delivery Updated

With the Presidential Decision numbered 5359 published in the Official Gazette dated March 29, 2022 and numbered 31793, some amendments have been made on VAT rates in the lists I and II, effective as of April 1, 2022.

The amendments can be listed below:

• The VAT rate has been determined as 8% in the part of the net area of the houses up to 150 m2. The VAT rate is 18% for the part of the net area exceeding 150 m2.
• VAT rate would be applied as 1% for the net area up to 150 m2 of the lands projected for housing (including the parts reserved for social facilities) by municipalities, special provincial administrations, the Housing Development Administration and the businesses in which they have 51% or more of the shares or the right to vote in the management. VAT rate of 18% would be applied for the excessive part.
• 8% VAT rate would be applied for the net area up to 150 m2 of the houses not included on the above statements, and 18% VAT rate would be applied for the excessive part.
• 18% VAT rate would be applied as previous for the workplace deliveries regardless of the square meter,
• 1% VAT rate would be applied for seeds and saplings certified by the Ministry of Agriculture and Forestry without any limitation or discrimination.
• VAT rate has been reduced to 8% on soap, shampoo, detergent, disinfectants, wet wipes (whether soap, detergent or solution impregnated), toilet paper, paper towels, tissue and napkins, toothbrush and paste, outer yarns.
• The VAT rate has been determined as 8% for land and land deliveries.
• The VAT rate will be applied as 18% in the delivery of the vehicles purchased by the taxpayers engaged in the trade of second-hand motor vehicles. And 18% VAT rate would be applied in deliveries with the special tax base applied.
• 18% VAT will be applied on the invoice for the sales of cars purchased by the dealers with new vehicles, from car rental companies, driving courses or taxi companies.
• 1% VAT would be applied on the invoice to be issued for the sales of Secondhand Cars purchased by the dealers by paying 1% VAT from the Income and Corporate Taxpayers.
• Per the communiqué, by taxpayers in charge with second-hand motor land vehicle trade as of 22.03.2019:
• 1% VAT rate would be applied for the delivery of cars purchased with a VAT rate of 1%,
• 18% VAT rate would be applied on the delivery of cars purchased with 18% VAT rate applied.
• VAT rate has been reduced to 8% for machinery and devices used in dairy in addition to milking machines,
• The VAT rate has been increased to 18% which has been previously applied as 1% for yachts, boats, boats and pleasure ships,
• VAT rate has been reduced to 8% for milk cooling tanks and machines and devices for separating or cleaning eggs, fruits or other agricultural products by weight or size.
• VAT rate is 1% for the net area of up to 150 m2 of the houses built within the framework of the transformation projects in the places determined as reserve building areas and risky areas, and in places where there are risky structures within the scope of the Law on Transformation of Areas Under Disaster Risk (In Turkish) dated 16.05.2012 and numbered 6306.
• The VAT rate has been reduced from 18% to 8% for the places with a first class restaurant license or operating certificate, and in restaurants within three star hotels, holiday villages and similar facilities.

The new VAT rates would be in force as of April 1, 2022.

You can reach the relevant via the link (In Turkish).

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