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Turkey prolongs VAT rate cuts on COVID fears

Turkey has again extended the application of temporary VAT cuts due to the ongoing coronavirus pandemic and economic situation. The following supplies will continue to be reclassified from the reduced 8% rate to the reduced rate of 1%:

  • Overnight accommodation
  • Hospitality services
  • Entrance to theatres, cinemas and cultural attractions
  • Domestic airline transportation (was at standard 20% rate)

The VAT rates cuts were originally introduced in July 2020, and were due to expire on 31 May 2021. They will now continue until 31 July 2021. VAT Calc’s global VAT and GST rates online database provides a free look-up rate search for over 200 taxing jurisdictions.

The following services have also been reduced from 18% to 8%:

  • workplace rental services;
  • congress, conference, seminar, concert, fair and amusement park entrance fees;
  • organization services provided in weddings, wedding ballrooms and cocktail halls;
  • barber and hairdressing services and services provided in beauty salons;
  • repair of tailoring, apparel and home textile products;
  • shoe and leather goods repair and shoe dyeing services;
  • ironing services for dry cleaning, laundry and other textile products;
  • carpet and rug washing services;
  • maintenance and repair services for bicycles, motorcycles and motorbikes (except for equipment); and
  • maintenance and repair of home:

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