Tax News Update    Email this document    Print this document  

July 10, 2023
2023-1194

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

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement