Türkiye increases VAT rates on goods and services

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.