Numara : 9
Tarih : 7.7.2023

TAX NEWS 

NO: 2023/7 

Subject: VAT rates increased

Presidential Decree No. 7346 has been published in the Official Gazette of 07 July 2023.

As it is known, VAT rates, attached to the Council of Ministers Decree No. 2007/13033;

- 1% for the deliveries and services included in the list (I),

- 8% for the deliveries and services included in the list (II),

- 18% for taxable transactions not included in these lists

are applied.

With the Presidential Decree No. 7346, the general VAT rate has been increased from 18% to 20% and the 8% reduced VAT rate has been increased to 10%. The reduced VAT rate of 1% applied to some basic foodstuffs was not changed.

On the other hand, this decree amended the 37th line of the list (II), where the reduced VAT rate of 8% is applied.

Accordingly, the VAT rate on soap, shampoo, detergents, disinfectants, wet wipes (whether or not impregnated with soap, detergent or solution), toilet paper, paper towels, tissue paper and napkins has been increased from 8% to 20%.

Old regulation

New regulation

37- Soap, shampoo, detergent, disinfectant, wet wipes (whether or not impregnated with soap, detergent or solution), toilet paper, paper towels, tissue paper and napkins, toothbrush and paste, dental floss

37- Toothbrush and paste, dental floss

This regulation will come into force on 10 July 2023 (Monday).  After that date (including this date), all invoices must be issued using the new VAT rates. Taxpayers therefore, urgently need to adapt their systems to the new decree.

 

Yours sincerely,

Deloitte Turkey

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