VAT rate increased

The VAT rate for restaurants and cafes has been increased from 8 percent to 10 percent, and from 18 percent to 20 percent. The communiqué has been published in the Official Gazette.

İHA

According to the decision published in the Official Gazette, the VAT rate applicable to businesses selling food and beverages has been increased from 8 percent to 10 percent, and the 18 percent VAT rate has been raised to 20 percent.

With this regulation, it will no longer be possible for restaurants to invoice their services at a 1 percent VAT rate instead of 10 percent by misrepresenting them as sales of food items such as meat, water, or fruit juice.

ENTERED INTO FORCE

Businesses providing services such as restaurants, cafes, and patisseries will calculate VAT at a rate of 10 percent for the food and beverages they prepare and serve, as well as for products they procure from outside and sell on their premises. All sales made by these businesses through methods such as home delivery via phone or internet orders, or take-away, will also be evaluated within the same scope.

Sales made by those who provide food and beverage services in areas where service can be provided, such as tables, seating areas, or counters, even if they do not hold a business license for food and beverage services, will also fall within this scope. The decision has entered into force upon its publication in the Official Gazette.