Tax News Update    Email this document    Print this document  

July 10, 2023

Turkiye increases VAT rates on goods and services

Presidential Decree No. 7346, which was published in the Official Gazette on 7 July 2023, makes the following changes in value added tax (VAT) rates:

  • VAT rate increased from 8% to 10% for deliveries and services included in "list II," which includes toothbrushes, toothpaste, dental floss
  • VAT rate increased from 8% to 20% for soap, shampoo, detergent, disinfectants, wet wipes (whether soap, detergent or solution impregnated), toilet paper, paper towels, tissue and napkins
  • General rate of 18% increased to 20% for transactions subject to taxation, except those included in "lists I and II"

These changes are effective as of 10 July 2023. In light of these changes, starting from 10 July, Turkiye's VAT rates will be as follows:

  • Standard 20%
  • Reduced 1%, 10%

For additional information with respect to this Alert, please contact the following:

Kuzey Yeminli Mali Müsavirlik A.S., Istanbul

Ernst & Young LLP (United States), Turkish Tax Desk, New York

Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor