Reductions to the rates of value added tax (VAT) are intended to provide relief for small companies, artisans, individuals involved in crafts production, and others affected by the coronavirus (COVID-19) pandemic.
According to a presidential decree (published in the official gazette on 31 July 2020), reduced VAT rates apply from 31 July 2020 through 31 December 2020, as follows:
The VAT rate is reduced from 18% to 8% for:
The VAT rate is reduced from 8% to 1% for:
*The VAT rate for restaurants is reduced to 8%; for other small restaurants the previous rate of 8% is reduced to 1%.
The withholding tax rate for rental of business premises is also reduced from 20% to 10%, through 31 December 2020.
For more information contact a KPMG tax professional in Turkey:
M. Yavuz Oner | +90 212 316 60 00 Ext:6042 | email@example.com
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