Turkey temporarily reduces VAT Rates

VAT Rates - Turkey - Taxscan

Turkey has temporarily reduced Value Added Tax (VAT) rates at numerous sectors through a presidential decree on its official gazette, on 31st July 2020. Turkey has taken this reduction measures in light of the continuing health crisis all over the world.

 The VAT is reduced from 18% to 8%for the following goods and services:

  1. Workplace (office) rental services;
  2. Congress, conference, seminar, concert, fair, and amusement park entrance fees;
  3. Organization services provided in weddings, wedding ballrooms, and cocktail lounges;
  4. Barber and hairdressing services and services provided in beauty salons;
  5. Repair of tailoring, clothing, and home textile products;
  6. Shoe and leather goods repair and shoe dyeing services;
  7. Dry cleaning and ironing services for laundry, apparel, and other textile products;
  8. Carpet and rug washing services;
  9. Maintenance and repair of materials (Bicycles, motorcycles, motorbikes, electrical appliances used in the home, consumer electronics products, heating products used in the home, home and garden equipment, furniture and home furnishings, computers, communication tools and musical instruments are excluded)
  10. Locksmith and key duplication services and porter services;
  11. Lubrication, washing, and polishing services for motor vehicles and maintenance and repair of their seats and upholstery (excluding materials);
  12. Housing maintenance, repair, painting, and cleaning services provided to households (excluding materials);
  13. Certain food and beverage services (excluding alcoholic beverages);
  14. Passenger transportation services; and
  15. Ornamental plants and flower deliveries.

Turkey has also decided to provide a temporary reduction from 8% to 1% VAT rate on entrance fees for cinemas, theatres, operas, ballets, and museums, and for overnight accommodation services.

The decision has come into force since the date of its publication and will apply till 31st December 2020.