- There is confusion regarding the application of VAT rates in food and beverage services.
- VAT rates for goods and services are determined by the Council of Ministers before the amendment and by the President after the amendment.
- The VAT rates are 1% for items listed in Annex (I), 10% for items listed in Annex (II), and 20% for other taxable transactions.
- According to a regulation, certain food items listed in Annex (I) are subject to 1% VAT rate starting from February 14, 2022.
- Services provided in places like cafes, pastry shops, and restaurants are subject to a 10% VAT rate, except for certain establishments listed in Annex (II).
- Detailed explanations can be found in the VAT General Implementation Communiqué.
- The definition and classification of food service establishments are based on the “Regulation on Opening and Operating Permits” and other relevant legislation.
- Specific food items are defined in the Turkish Customs Tariff Schedule.
- Certain items like chocolate and bakery products have specific VAT rates based on their classification in the Turkish Customs Tariff Schedule.
- Factory-produced products like baklava, cakes, and pastries have specific VAT rates according to their classification in the Turkish Customs Tariff Schedule.
Source: alomaliye.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
