Presidential Decree No. 7346, which was published in the Official Gazette on 7 July 2023, makes the following changes in value added tax (VAT) rates:
- VAT rate increased from 8% to 10% for deliveries and services included in "list II," which includes toothbrushes, toothpaste, dental floss
- VAT rate increased from 8% to 20% for soap, shampoo, detergent, disinfectants, wet wipes (whether soap, detergent or solution impregnated), toilet paper, paper towels, tissue and napkins
- General rate of 18% increased to 20% for transactions subject to taxation, except those included in "lists I and II"
These changes are effective as of 10 July 2023. In light of these changes, starting from 10 July, Türkiye's VAT rates will be as follows:
- Standard 20%
- Reduced 1%, 10%
For additional information with respect to this Alert, please contact the following:
Kuzey Yeminli Mali Müsavirlik A.S., Istanbul
- Sercan Bahadir, Indirect Tax Leader
- Sedat Tasdemir, Partner
- Gözde Küçükçelebi, Senior Manager
Ernst & Young LLP (United States), Turkish Tax Desk, New York
- Gamze Durgun
Published by NTD's Tax Technical Knowledge Services group; Carolyn Wright, legal editor
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
