Value added tax

Turkish law is characterized by the fact that it follows a specific organization that includes all aspects of life in Turkey and is familiar with all fields in order to guarantee all Turks and residents an orderly and calm life. It is noted in general that the Turkish people possess extensive knowledge regarding the issue of taxes in Turkey, due to the great interest that the Turkish government attaches to the issue of taxes in Turkey. Collect taxes, and if you want to reside in Turkey as foreign citizens, you must have enough information to know your duties and dues that you must pay, in this article we will talk about the value-added tax (KDV) in Turkey, the rate of this tax, and cases of exemption from it.

First - what is value added tax?

It is the tax imposed by the Turkish state on goods and services of a commercial, industrial, agricultural and craftsman nature, goods and services imported from outside Turkey (imports) and the delivery of goods and services, and it is symbolized in Turkey by (Katma Değer Vergisi) KDV. The tax is according to the sales profits you make, but this tax is mainly deducted from the final consumers of the goods.

Second - the value-added tax rate:

1% tax rate: This rate is imposed on wheat products of various derivatives and forms, as it is considered one of the basic materials for consumption. It is also imposed on apartments in Turkey whose area does not exceed 150 square meters.

The tax rate is 8%: This rate is imposed on basic products, but it is not included in the luxuries such as meat with its various derivatives, eggs, legumes, milk and its derivatives, in addition to honey, molasses, some animals and other products.

The tax rate is 18%: This rate is imposed on all products that are not considered essential. This item includes electrical and communication equipment, furniture, some animals, spices and other products.

Third - What are the goods that are exempted from VAT in Turkey?

  1. Activities of exploration for oil and underground resources.

  2. All activities that take place within the free zones in Turkey.

  3. Roaming services for telecommunication devices, provided that reciprocity is dealt with by the countries to which the owners of these devices belong.

  4. Transit

  5. Services that are provided by ports and airports.

  6. All tools and devices that is imported within the scope of the investment certificate.

  7. Banking and insurance transactions.

  8. All deliveries and exchange of services carried out by representatives of countries, such as ambassadors and diplomats, provided that reciprocity is dealt with by their country.

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