Fiscal subject related
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 to curb cross-border e-commerce
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
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
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
This document contains an overview of the presence of fiscalization and its types in all European countries. Read more
Key Elements of Turkey's e-Archive Invoices
E-Archive is a special type of e-invoice used for B2C sales. Turkey's e-Archive system is used as an alternative fiscalization system that excludes any hardware requirements. Let's find out more about this topic. Read more
New document was uploaded: Digital Product Passport
Do you even know what DPP is? Digital Product Passports (DPP) are set to play a crucial role in the European Union’s commitment to a circular economy. The purpose of this document is to provide you with a necessary overview of the upcoming Digital Product Passport requirements set to be implemented by the European Union. Read more