15.02.2022/11
VAT Rate Change for Basic Food Products
Summary On February 13, 2022, Decree Amending the Decree on the Determination of Value Added Tax Rates Applicable to Goods and Services (Decree No: 5189) was published in the Official Gazette dated February 13, 2022 and numbered 31749. With this Decree, the value added tax rates applied to basic foodstuffs have been amended.
As it is known, VAT rates are determined by Decree No. 2007/13033;
a) For taxable transactions, except those included in the annexed lists, 18
b) For the deliveries and services included in the annexed list (I), 1%
c) For the deliveries and services included in the annexed list (II), 8
as a new program.
The amendments made to Decision No. 2007/13033 are summarized below:
- The rows in the “A- Foodstuffs” section of List No. II, which are subject to 8% VAT, were removed from this list and included in List No. I together with the section title. Thus, VAT on these goods was reduced to 1%.
- The VAT rate of 8% will continue to apply to foodstuffs subject to SCT, which are subject to the 1% VAT rate.
- VAT rate of 1% will be applied in the import of the goods in question as in the domestic sales.
- For some products (nuts, spices and pulses group products, milk, garlic, olives, olive oil, olive oil, small and bovine animals), the different VAT rate application in wholesale and retail deliveries has been abolished and the same VAT rate will be applied at every stage.
- The VAT rates of the services provided in places where food service is provided (restaurants, cafeterias, patisseries, etc.), places where standing meals are eaten, places that sell food in packages or provide food service in other ways have not been changed. The VAT rate for these services will continue to be applied as 8%.
- The VAT incurred in relation to these sales subject to the reduced rate and which cannot be eliminated by way of discount can be requested to be refunded.
- These VAT rates are effective from Monday, February 14, 2022.
Resolution No. 5189 is available here.
Sincerely,
BİLGENER
