Breaking news… The details of the VAT discount announced by President Recep Tayyip Erdogan, which millions wondered, became clear. According to the breaking news, with the decision published in the Official Gazette, the question of `what does the VAT discount cover the products with VAT discount?’ became clear. With the reduced VAT rate, the product list is among the most researched as of April 1, today. Here is the complete list of products with VAT discount.
Breaking news… The VAT reduction decision announced by President Recep Tayyip Erdogan and the related regulation was published in the Official Gazette. Reduced VAT rates have started as of today. So, which products does the VAT discount cover? Here are the details…
VAT DISCOUNT OFFICIALLY ENTERED INTO FORCE TODAY
Value Added Tax reduction regulation, briefly VAT reduction, entered into force as of today. Discounts were reflected in prices in many areas from diapers to seeds, from land sales to restaurants.
PRESIDENT ERDOGAN ANNOUNCED
President Recep Tayyip Erdogan announced at the last minute that VAT rates were reduced on some products after the Council of Ministers.
PUBLISHED IN THE OFFICIAL GAZETTE: WHICH PRODUCTS ARE COVERED BY VAT DISCOUNT?
The Presidential Decision Amending the Decision Regarding the Determination of Value Added Tax Rates to be Applied to Goods and Services was published in the Official Gazette.
VAT DISCOUNT ON BASIC NEEDS MATERIALS
While important steps were taken in the fight against inflation, VAT was reduced in basic necessities as well as basic food products.
VAT DISCOUNT INTERESTS NEARLY EVERY SECTOR
Accordingly, the VAT rate of seeds and saplings certified by the Ministry of Agriculture and Forestry has decreased to 1%.
18% VAT will be applied to the deliveries of the vehicles purchased by applying 18% 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.
The VAT rate to be applied for up to 150 square meters of the net area of the residences built within the framework of the transformation projects in the areas designated as reserve building areas and risky areas, and in places where risky structures are located, within the scope of the Law on Transformation of Areas Under Disaster Risk No. 6306, was 1%.
For the part of the net area of the houses up to 150 square meters, the VAT rate has started to be applied as 8%.
The VAT rate on land and land deliveries also decreased from 18% to 8%.
The old provisions will continue to be applied for the residences built within the scope of projects for which a construction permit was obtained or tendered by public institutions and organizations and their affiliates before the effective date of the decision.
VAT FOR RESTAURANTS IS 8%
Delivery of devices subject to the “Medical Device Regulation” and “In Vitro Diagnostic Medical Device Regulation” published by the Ministry of Health and their rental services are also included in the scope of the 8% VAT rate.
The 18% VAT rate applied for places with a first-class restaurant license or operating certificate, and for restaurants within the scope of three-star and above hotels, holiday villages and similar facilities has dropped to 8%.
The VAT rate of yachts, boats, boats and cruise ships will be applied as 18%.
VAT DISCOUNT ON TOILET PAPER, BABY DIAPER AND HYGIENIC PAD
VAT rate in the sale of products such as soap, shampoo, detergent, disinfectants, wet wipes (whether soap, detergent or solution impregnated), toilet paper, paper towels, tissue and napkins, toothbrush and paste, dental floss, baby diapers, sanitary pads decreased from 18% to 8%.
Machinery and devices used in dairy farming and machines and devices for separating or cleaning eggs, fruits or other agricultural products according to their weight or size are also included in the scope of agricultural machinery for which 8% VAT is applied.
Source: Sabah / Translated by Irem Yildiz