All you need to know about VAT in Turkey

Created: 2021-08-20
Last Updated: 2024-04-30
Views: 3036

Content Index

Definition of VAT in Turkey:
The method of calculating value-added tax in Turkey:
What are the types of products for which the tax rate is 1%?
What are the products for which the tax rate is 8%?
What are the products for which the tax rate is 18%?
What goods are exempt from VAT in Turkey?
What about the value-added tax on real estate in Turkey?

Turkish law is distinguished by the fact that it follows a specific organization that includes all aspects of life in Turkey and is familiar with all fields in order to guarantee all Turks and residents an orderly and peaceful life.
Looking at the Turkish economy, we find that it is based on firm foundations to ensure its stability. Therefore, the tax laws in Turkey are based on deep studies in order to bring comfort to the state and the investor. One of the most important types of taxes in Turkey is the value-added tax.. What does it mean and how is it done? and how to calculate it? This is what we will learn in the following article:

Definition of VAT in Turkey:

It is a tax that is imposed on different products in Turkey and that final consumers pay according to fixed rates, either 1%, 8% or 18%, according to the Added Tax Law No. 3065, and these rates vary according to the importance and necessity of the product.
As for the products covered by this tax , they are all types of products that are sold within Turkish territory , in addition to imported products , and various commercial and industrial activities and entrepreneurship , and thus we find that they include various types of investment in Turkey .

The method of calculating value-added tax in Turkey:

The basic method for calculating the value added tax is very simple. You only need to multiply the price of the original product by the percentage of the tax incurred on it, and this is how you get the final price of the product, including the value of the tax.
To simplify the idea, an example is given of a product whose price is 500 Turkish liras, for example, and the tax rate on it is 18%. Then the price of this final product will be 590 Turkish liras.

What are the types of products for which the tax rate is 1%?

This percentage is imposed on wheat products of various derivatives and forms, as it is considered one of the basic materials for consumption. It is also imposed on apartments in Turkey whose area does not exceed 150 square meters.

What are the products for which the tax rate is 8%?

This percentage is imposed on basic products, but they are not included in luxury, such as meat with its various derivatives, eggs, legumes, milk and its derivatives, in addition to honey, molasses, some animals and other products.

What are the products for which the tax rate is 18%?

This percentage is imposed on all products that are not considered essential. This item includes electrical tools, communication devices, furniture, some animals, spices and other products.

What goods are exempt from VAT in Turkey?

1- Activities of oil exploration and underground resources.
2- All activities that take place within the free zones in Turkey.
3- Roaming services for telecommunication devices, provided that reciprocity is dealt with by the countries to which the owners of these devices belong.
4- Transit
5- Services provided by ports and airports.
6- All tools and devices that are imported within the scope of the investment certificate.
7- Banking and insurance transactions.
8- All deliveries and exchange of services carried out by representatives of countries, such as ambassadors and diplomats, provided that reciprocity is dealt with by their country.

What about the value-added tax on real estate in Turkey?

Foreign investments in Turkey's real estate have witnessed significant growth over the past years, and this has prompted many investors to ask questions about the value-added tax imposed on real estate in Turkey.
The tax rate is calculated based on several criteria related to the area and location of the property, and on the basis of that it is either 18%, 8% or even 1%.
And there are some exceptions that should be noted and asked the experts about them.
And there are many discounts that the Turkish government periodically issues to encourage the investor to invest in real estate in Turkey .

#apartments #istanbul #turkish_citizinship

دعنا نتواصل لنساعدك!

باختيار أنسب عقار