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;
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.