Finance Minister of Turkey made a statement about new tax cuts for the fight against coronavirus. With the announced arrangement, it was aimed to support the sectors affected by the coronavirus in Turkey. Details on which sectors VAT discounts will be applied to have been published in the Official Gazette.
The VAT rates applied in the provision of defined goods and services to the specified services and activities were reduced from 18 percent to 8 percent, effective until the end of 2020.
HOW LONG DO VAT DISCOUNTS APPLY IN TURKEY ?
VAT discounts will be valid until 31.12.2020 in Turkey. It is anticipated that it will be an important support to many different sectors that have a hard time with the regulations and are stagnating in their commercial activities.
WHICH SERVICES ARE APPLICABLE TO 2020 VAT DISCOUNTS IN TURKEY ?
Sectors and services that can benefit from the 2020 VAT reduction in Turkey;
- Workplace rental activities
- Congress, conference, seminar, concert, fair and funfair entrance fees
- Organization services provided in wedding, wedding, ball and cocktail halls
- Barber and hairdressing services and services provided in the beauty salon
- Tailoring, repair and repair of clothing and home textile products
- Shoe and leather repair and shoe shine services
- Dry cleaning, laundry, clothing and other textile ironing services and carpet and rug washing services
The VAT reduction, which will continue until 31.12.2020, will include the following activities, excluding materials:
- Maintenance and repair of bicycles, motorcycles and motorized bicycles,
- Maintenance and repair of household electrical appliances (such as refrigerator, oven, washing machine, dishwasher, oven, air conditioner),
- Maintenance and repair of consumer electronics products (such as TV, radio, CD / DVD players, home video cameras),
- Maintenance and repair of home heating products (such as water heater, water heater, bath boiler, boiler) (except central heating boilers), maintenance and repair of home and garden equipment,
- Maintenance and repair of furniture and home furnishings, maintenance and repair of computers, communication tools and equipment, clocks,
- Maintenance and repair of musical instruments,
- Locksmith and key duplication services and porter services,
- Lubricating, washing, polishing services of motor vehicles, and maintenance and repair of their seats and upholstery,
- Housing maintenance, repair, painting and cleaning services provided to households.
- Important; Materials / products offered for these activities will not be included in the discount. The VAT rate of the materials will continue to be taxed at old rate.
SUPPORT TO CULTURAL TOURISM AND ART ACTIVITIES: VAT REDUCED TO 1%
Within the scope of the VAT reduction made in 22 areas in order to reduce the pessimistic atmosphere created by the coronavirus in the economy, important steps have also been taken to revitalize and develop tourism activities, especially. However, it was stated that the said discount is valid for cultural and artistic activities.
It was also announced that the VAT rate was reduced to 1 percent in accommodation, hotel management and food and beverage activities, which was previously 8 percent, and in cultural organizations such as cinema, theater, opera, operetta, ballet, museum entrance fee.