VAT Discount in Turkey

There has been a development that closely concerns the tourism world. The discount in value added tax, which concerns many sectors, also concerns those who will travel to Turkey.

The regulation, which will come into effect from April 1, will affect a wide range of products from grocery stores to hotels. The 18 percent VAT (KDV in Turkish) rate applied in places with a first class restaurant license or business license will be reduced to 8 percent. In addition, the 18 percent VAT rate applied for restaurants within three star and above hotels, holiday villages and similar facilities will be reduced to 8 percent.

We can think of the effect like this:

Let's say that while the cost of a dinner for three people was 500 TL, when 18% VAT was added, the total amount increased to 590 TL. Now it will be 540 TL.

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There are three different VAT rates in Turkey: 1%, 8% and 18%. 8% VAT is applied for accommodation in hotels and 18% VAT is applied for air transportation.