Turkey: VAT rate reductions for certain services (COVID-19)

Turkey: VAT rate reductions for certain services

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.


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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:

  • Rentals of business premises
  • Entrance fee for meetings, conferences, concerts, and fairs
  • Weddings and cocktail parties
  • Barbers and beauty salons
  • Tailoring and repair services for garments
  • Shoe repairs
  • Dry cleaning and laundry services
  • Carpet cleaning services
  • Repair of bikes and motorbikes and some services related to motor vehicles
  • Repair of home appliances, electronic devices, furniture and musical instruments
  • Locksmith services
  • Painting and maintenance of houses
  • Food services and restaurants
  • Passenger transportation services
  • Flower deliveries

The VAT rate is reduced from 8% to 1% for:

  • Cinema, opera, ballet, and museum admissions
  • Coffee shops, cafe, patisseries and certain other restaurants*
  • Hotels, motels, and other accommodation services

*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 | yoner@kpmg.com

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