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.
VAT rates for food and beverage services in Turkey
Public
Turkey
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
817
Content accuracy validation date:
13.05.2024
Content accuracy validation time:
09:38h
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.
Other news from Turkey
Turkey Embraces AI and Machine Learning to Tackle VAT and Tax Fraud
Public
Turkey
Author: Stefan Ditrih
Turkey
Author: Stefan Ditrih
Turkey's Treasury and Finance Ministry plans to leverage AI technology to combat tax evasion, enhance audit efficiency, and detect fraud, particularly in high-risk sectors like construction. By employing predictive and advanced analytics and tools for tax and customs analysis, Turkey aims to improve its tax collection rates and close the compliance gap with other OECD countries. AI will automate a... Read more
Turkey limits cash transactions effective immediately
Turkey
Author: Stefan Ditrih
Turkey has amended its Tax Procedure Law (Tebliğ No. 459), limiting cash transactions to 7,000 TL (approximately €250) and requiring amounts above this to be processed through financial intermediaries like banks. Read more
Turkey to curb cross-border e-commerce
Public
Turkey
Author: Stefan Ditrih
Turkey
Author: Stefan Ditrih
Due to the struggling economy and rampant inflation, the Turkish government is rolling out significant tax changes to curb the surge in online shopping from international stores. Import duties are set to rise sharply, and the exemption threshold will be lowered. Additionally, certain product categories will face an extra tax. E-commerce in Turkey has been booming, with online spending more than do... Read more
Need to know essentials when opening an online store in Turkey
Public
Turkey
Author: Stefan Ditrih
Turkey
Author: Stefan Ditrih
Opening an online store in Turkey involves several key steps, starting with registering your business with the Trade Register. This process is straightforward and can be handled by a lawyer or accountant in Turkey. Steps to Set Up an Online Store Register Your Business: The first step is to register your business with the Trade Register. This legal requirement ensures your business is recognize... Read more
Updates to Turkey's e-Archive (e-Arşiv) System
Turkey
Author: Kristina Dosen
Starting July 1, 2024, Turkey's Revenue Administration (TRA) will implement new mandatory fields for e-Arşiv invoices. Let's find out more about this. Read more
New document was uploaded: Overview of fiscalization in European countries
Author: Kristina Dosen
This document contains an overview of the presence of fiscalization and its types in all European countries. Read more