- Changes in the VAT General Implementation Communiqué No. 51, published in the Official Gazette on 27/4/2024, have caused confusion regarding the VAT rates applied to food and beverage services.
- VAT rates for goods and services are determined by the Council of Ministers before Law No. 700, and by the President after the law was changed.
- The VAT rates are currently 1% for items listed in Annex (I) of the Council of Ministers Decision and 10% for items in Annex (II), while other taxable transactions are subject to a 20% rate.
- A recent Presidential Decree has set a 1% VAT rate for certain food items listed in Annex (I) of the Council of Ministers Decision.
- Services provided in places like cafes, tea gardens, and restaurants are subject to a 10% VAT rate, except for the portion related to alcoholic beverages.
- The VAT rate for services in places listed in Annex (II) of the Council of Ministers Decision is 10%, with a 20% rate for the portion related to alcoholic beverages.
- Alcoholic beverages are subject to a 20% VAT rate, excluding carbonated soft drinks, as per the Special Consumption Tax Law.
- The VAT rate for services in establishments where both discounted and alcoholic beverages are served is 20% for the portion related to alcoholic beverages.
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.
