close
Share with your friends

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.

1000

Related content

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

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal