The VAT reduction, announced by President Erdogan in the past few days, has come into effect as of today. We shared all the details of the new VAT discount, which also covers basic needs.
President Recep Tayyip Erdoğan touched upon important issues on the country’s agenda at the Cabinet Meeting held yesterday. One of these issues was the Value Added Tax (VAT), which has been on the agenda with new applications for a while.
In his speech, the President of the Republic, which is planned to be realized in many areas, from VAT discounts and made the long-awaited announcement. It has been announced that the VAT reduction will also be applied to a new group of products. That VAT reduction came into effect today. So, on which products did the discount take place?
VAT falls from 18% to 8% on basic necessities:
- According to President Erdogan’s statements, products such as detergents, soap, toilet paper, napkins and baby diapers, which fall under the category of basic needs, VAT from 18% to 8% was dropped.
- VAT rate in all food services fixed at 8%.
- A single VAT deduction is not made for basic needs. According to the statements, a gradual VAT system, which varies according to square meters, will also be applied in housing purchases.
- Within the scope of transformation of disaster risk areas 150 m2nd until %one150 m2nd In residences exceeding square meters 18% VAT will be applied.
- Land and lands VAT rate will be reduced to 8%.
- Subject to the provisions of the “Medical Device Regulation” and “In Vitro Diagnostic Medical Device Regulation” published by the Ministry of Health within the scope of 8 percent VAT rate. delivery of devices and their rental services will also be included.
- It is applied for places with first class restaurant license or operating certificate and for restaurants within the scope of three-star and above hotels, holiday villages and similar facilities. 18 percent VAT rate will be reduced to 8 percent.
- On the other hand, only the reduction in VAT did not come into effect. 1% VAT applied to the sale of yachts, boats, boats and cruise ships will increase to 18%.
- 18 percent VAT will be applied to the deliveries of the vehicles purchased by applying 18 percent VAT rate to the taxpayers engaged in the trade of second-hand motor vehicles, and to the deliveries made by applying a special tax base.