Pursuant to Presidential Decree dated 07/07/2023 and numbered 7346, Value Added Tax (VAT) rates have changed in Turkey.
With the Presidential Decree No. 7346;
The general VAT rate applied as 18% has been increased to 20%.
The VAT rate for deliveries and services subject to 8% VAT has been increased to 10%.
The regulation has entered into force on July 10, 2023.
The 1% rate applied for the delivery and services included in the attached list (I) has not been changed.
VAT rate was increased from 8% to 20% for soap, shampoo, detergent, disinfectants, wet wipes (whether impregnated with soap, detergent or solution), toilet paper, paper towels, tissue paper and napkins.
In Article 28 of the Value Added Tax Law; It is stated that the rate of value-added tax is 10% for each taxable transaction and that the President of the Republic is authorized to increase this rate up to four times, to reduce it to 1% and to fix different tax rates for various goods and services and for the retail phase of some goods within these rates.
In the old legislation, a general regulation was set for VAT rates. In this arrangement, the triple rate system and rates currently applied to goods and services are preserved; The value-added tax rates to be applied to the delivery of goods and the performance of services were arranged as follows;
a) %18 for taxable transactions, except for those included in the attached lists
b) %1 for the deliveries and services listed in the attached list (I)
c) 8% for the deliveries and services included in the attached list (II)
The tax rates included in the annex of the aforementioned decision were subsequently amended on different dates.
