VAT Increases to 18 Percent on Used Car Sales

In a news we shared with you yesterday, President Erdogan Cabinet Meeting from his later statements. we talked about. According to these statements, VAT was reduced for some basic needs products, and 8 percent VAT was decided for all catering services. There was also the matter of vehicle purchases and sales. According to President Erdogan’s statement, 1 percent VAT applied on second-hand vehicle purchases, would be increased to 18 percent..

Today’s issue of the Official Gazette has made these statements official. Presidential Decision No. 5359 VAT regulation came into our lives. According to this April 1, 2022 As of date, 18 percent of the profit from second-hand vehicle sales will be paid as VAT. So your auto galleries costs will increase. So what does this mean? It is possible to say already that the prices of used cars will increase.

Why will the VAT increase change prices?

Car dealerships have been paying 1% of the profits from second-hand car sales as tax. With the President’s Decision published in the Official Gazette, 18 percent of the profit will be paid as tax. In other words, less money will be left in the pocket of the gallerist. Even so, snow wanting to keep their margin stable galleristwill increase the price of the used car it will sell. As a natural consequence of this, those who want to buy a second-hand vehicle from the consumer’s pocket more money will come out.

According to industry sources, increasing VAT in used car purchases will not only increase prices. Off the record It is believed that trading transactions will also increase. You may think that informality is difficult in vehicle transfers, but at this point using alternative methods pretty easy…