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Public Turkey Author: Kristina Dosen
In Turkey, the application of value-added tax (VAT) on food and beverage services is subject to different rates based on the type of product and service scenario. In the following, we will focus more on VAT rates and their application in different scenarios.
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Fiscal subject related

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Content accuracy validation date: 13.05.2024
Content accuracy validation time: 09:38h

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Here's a breakdown of the current VAT rates:

  • 1% VAT Rate: This rate applies to agricultural products and certain essential goods
  • 10% VAT Rate: Recently increased from 8%, this rate now applies to food and beverage services, including restaurant and cafe services
  • 20% VAT Rate: The standard VAT rate for most goods and services, including some non-essential food and beverage products

Application in Different Scenarios:

  • Essential Food Items: Basic foodstuffs that are considered essential for nutrition are taxed at the lower rate of 1%.
  • Food and Beverage Services: When food items are served as part of a service by restaurants, cafes, and similar establishments, they are taxed at the 10% rate.
  • Non-Essential Items: Certain food and beverage items that are not deemed essential are subject to the standard rate of 20%.

Businesses need to implement correct VAT rates in different scenarios as there have been cases of improper VAT rates applied in the service industry in particular.

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