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Turkey cuts VAT on accommodation and cultural services to 1%

Two temporary cuts to VAT rates extended till 30 September 2021 during COVID-19 pandemic

Turkey has extended again the reduce the Value Added Tax rate on accommodation and other services to the 1% reduced rate, this time until 30 September 2021. A range of other services have also been cut from the 18% standard rate to the 8% reduced rate.

1. Hotels and cultural activities cut from 18% to 1%

The reduction in the hotel and similar overnight stay services’ VAT rate will apply until 30 September 2021.  This will cover:

  • hotels, shared accommodation, holiday homes, camping, pensions and similar housing; and
  • cinema, theatre, museums and entrance to similar cultural events or attractions.

The current VAT rate Turkey is 18%.

2. Other services cut from 18% to 8%

Other services included in the reduced VAT rate cut include:

  • Office rentals
  • Conference facilities
  • Seminars, amusement parks, fairs
  • Manual work: hairdressing; repairs of household equipment; car repairs; locksmith;

You can check the right Turkish or any country’s VAT or GST calculations on individual or batch transactions with our Advisor and Auditor services.

Many countries have sought to ease the financial burden on the hospitality and accommodation sectors during the COVID-19 pandemic by introducing reduced VAT rates. Countries include: Germany; the UK; Belgium; and Austria.


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