Press Release on Draft Regulation Regarding VAT Rate Application in Food and Beverage Services

• A draft regulation regarding the application of VAT rates in food and beverage services has been misunderstood by some media outlets
• The draft regulation does not involve any increase in VAT rates
• It aims to correct errors in implementation and prevent abuses in the food and beverage sector
• While the VAT rate for food items is 1%, it is 10% for the food and beverage sector
• Some restaurants have been exploiting this difference in rates, affecting competition
• The draft regulation clarifies that restaurants should apply a 10% VAT rate for food and beverage services
• The regulation aims to prevent tax losses and address uncertainties in the sector
• The regulation does not involve any increase in VAT rates and aims to prevent misuse and errors in the sector.

Source: gib.gov.tr

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.

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