Changes in VAT Rates of Certain Goods and Services
In the Official Gazette dated 29/3/2022 and numbered 31793, the “Decision Amending the Decision on the Determination of Value Added Tax Rates Applicable to Goods and Services (Decision Number: 5359)” was published.
The amendments made to the Decree of the Council of Ministers numbered 2007/13033, where VAT rates are determined by the aforementioned Decree, are as follows:
1) VAT Rate for Seed Sapling Deliveries
VAT will be applied at a rate of 1% on the delivery of seeds and saplings certified by the Ministry of Agriculture and Forestry.
2) VAT Rate Applicable to Housing Delivery
Within the scope of Law No. 6306 on the Transformation of Areas Under Disaster Risk, 1% of the net area up to 150 m² of the dwellings built within the framework of transformation projects in places designated as reserve building areas and risky areas and in places where risky structures are located,
The net area of the dwellings other than those mentioned above up to 150 m² is 8%,
The VAT rate of 18% will be applied on the net area of the houses in both groups exceeding 150 m².
Prior to April 1, 2022, the application before the amendment made by the Presidential Decree No. 5359 will be valid for the houses built within the scope of the projects for which a building permit was obtained or tendered by public institutions and organizations and their affiliates before April 1, 2022.
3) VAT Rate Applicable to Land and Land Deliveries
VAT at the rate of 8% will be applied on land and land deliveries.
4) VAT Rate Applicable to Yacht, Kotra and Boat Deliveries
VAT at the rate of 18% will be applied on the delivery of yachts, cottages, boats and recreational vessels.
5) VAT Rate Applicable to Medical Device Deliveries
VAT at the rate of 8% will be applied to the delivery of devices subject to the provisions of the “Medical Device Regulation” and the “In Vitro Diagnostic Medical Device Regulation” published by the Ministry of Health and to their leasing services.
6) VAT Rate to be Applied in Second Hand Vehicle Deliveries of Taxpayers Engaged in Second Hand Motor Land Vehicle Trade
Those engaged in the second-hand motor vehicle trade will calculate VAT at the rate of 18% on the deliveries of second-hand vehicles that they purchase from persons or organizations that are not VAT liable without VAT and to which they apply a special tax base.
7) VAT Rate Applicable to First Class Restaurants and Restaurants in Accommodation Facilities
The VAT rate was reduced from 18% to 8% for services provided in restaurants that have a first class restaurant license or business certificate, and in restaurants within three-star and above hotels, holiday villages and similar facilities.
8) VAT Rate Applicable to Machinery and Equipment Used in Agriculture
8418.69.00.99.19 G.T.İ.P. numbered milk cooling tanks, machinery and devices used in dairy farming in tariff position 84.34, 8433.60.00.00.00 G.T.İ.P. numbered eggs, fruits or other agricultural products classified in 8433.60.00.00.00 G.T.İ.P. 8% VAT will be applied in the delivery of machines and devices for separating or cleaning according to weight or size.
9) VAT Rate Applicable to Cleaning Materials and Baby Diapers
Soap, shampoo, detergent, disinfectants, wet wipes, toilet paper, paper towels, paper towels, paper napkins, baby and adult diapers, sanitary napkins, etc. (goods included in tariff position 9619.00) VAT will be applied at a rate of 8% on the delivery of products.
With the Presidential Decree No. 5359, the changes in VAT rates will enter into force on April 1, 2022, which is the beginning of the month following the publication of the Decree.
The relevant Decision is available here.
Sincerely,
BİLGENER
