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01October2021

Discounted VAT and Withholding Tax Application Have Expired as of 30.09.2021

Discounted VAT and Withholding Tax Application Have Expired as of 30.09.2021

Discounted VAT rates applicable to some goods and services and discounted withholding rate of rent payments have expired as of 30.09.2021.

The previous rates will be applicable as of 01.10.2021.

18% VAT rate will be applicable as of 01.10.2021 for the following goods and services;

  • Workplace rental service,
  • Congress, conference, seminar, concert, fair and amusement park entrance fees,
  • Organization services provided in weddings, ballrooms, and cocktail lounges,
  • Barbering and hairdressing services, along with the services provided in beauty salons,
  • Tailoring and repair of tailoring for apparel and home textile products,
  • Repair of shoes and leather goods and shoe dyeing services,
  • Ironing services for dry cleaning, laundry, apparel, and other textile products,
  • Carpet and rug washing services,
  • Maintenance and repair of bicycles, motorcycles, and mopeds (excluding materials),
  • Maintenance and repair of consumer electronics products (TV, radio, CD/DVD players, home video cameras, etc.) (excluding materials),
  • Maintenance and repairing of heating products used at home (water heater, bath boiler, combi, etc.) (excluding central heating boilers) (excluding materials),
  • Maintenance and repairing of electrical household appliances (refrigerator, oven, washing machine, dishwasher, air conditioner, etc.) (excluding materials),
  • Maintenance and repairing of home and garden equipment (excluding materials),
  • Maintenance and repairing of furniture and home furnishings (excluding materials),
  • Maintenance and repairing of computers, communication tools, and equipment (except materials),
  • Maintenance and repairing of musical instruments,
  • Locksmithing and key duplication services and porterage services,
  • Lubrication, washing, polishing services of motor vehicles and maintenance and repair of their seats and upholstery (excluding materials),
  • Residential maintenance, repairing, painting, and cleaning services provided to householders (excluding materials),
  • Food and beverage services outside the scope of the 24th row of the "B) OTHER GOODS AND SERVICES" section of the VAT attached list II, places that have a first-class restaurant license or operating certificate, and restaurants within the scope of hotels, holiday villages and similar facilities with three stars and above services provided in the premises (except for the portion of the services provided in these places for alcoholic beverages),
  • Passenger transportation services,
  • Flower delivery with ornamental plants

8% VAT rate will be applicable as of 01.10.2021 for the following goods and services;

  • Cinema, theater, opera, operetta, ballet, museum entrance fees,
  • 24th row of the "B) OTHER GOODS AND SERVICES" section of the VAT attached list II, FOOD AND BEVERAGE SERVICES: Coffeehouse, tea house, tea shop, cafeteria, patisserie, bistros, places that sell food in the package or provide food service in other ways, restaurants, restaurants (where alcohol served), kebab shops and similar services. (Except for the portion of the services provided in these places that correspond to alcoholic beverages),
  • Overnight services provided in hotels, motels, pensions, holiday resorts, and similar accommodation facilities,

20% Withholding Tax will be applied for the rent payments.

You can access further information on the subject through our article published on our website.

Should you have any queries or need further details, please contact your customer representative.

Written by Selma Kıy, Posted in Taxation Law

  • Notification!

    Contents provided in this article serve to informative purpose only. The article is confidential and property of CottGroup® and all of its affiliated legal entities. Quoting any of the contents without credit being given to the source is strictly prohibited. Regardless of having all the precautions and importance put in the preparation of this article, CottGroup® and its member companies cannot be held liable of the application or interpretation of the information provided. It is strictly advised to consult a professional for the application of the above-mentioned subject.

    Please consult your client representative if you are a customer of CottGroup® or consult a relevant party or an expert prior to taking any action in regards to the above content.

About The Author

Selma Kıy

Certified Public Accountant - SMMM
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