When will the VAT increase be reflected? The VAT increase begins…

The 8 percent VAT bracket applied to goods and services was increased to 10 percent, and the 18 percent VAT bracket was increased to 20 percent. These are the products affected by the increase in VAT and the rates of increase in other taxes and fees…

WHEN WILL THE VAT INCREASE REFLECT?

According to Presidential Resolution published in the Official Gazette; VAT of 18 percent applied to goods and services whose scope is specified in subsection (a) of the Decision on the Determination of the Value Added Tax Rates to Apply to Goods and Services, of 20 percent; The 8 percent VAT applied to goods and services, the scope of which is specified in subsection (b), has been reset to 10 percent.

Consequently, the VAT rate on soap, shampoo, detergent, disinfectants, wet wipes, toilet paper, paper towels, tissues, and napkins was increased from 8 percent to 20 percent.

The 1 percent VAT tranche, which mainly covers food, has not changed.

For products for which a separate tax rate is not specified The VAT rate was increased from 18 percent to 20 percent.

VAT rates on gasoline, tobacco, alcohol and electronic devices were 20 percent.

The decision made by the Ministry of Treasury and Finance in accordance with article 28 of the Value Added Tax Law No. 3605 will enter into force on July 10, 2023.

INCREASED THE TAX RATE ON CONSUMER CREDITS

The tax increase was not limited to VAT alone.

The banking and insurance transaction tax (BSMV) taken from consumer loans was also increased by 5 points to 15 percent.

228 PERCENT INCREASE IN TELEPHONE CHARGES FROM ABROAD

Another large increase was experienced in notary fees, passport and visa fees, and fees for permits to use telephones brought from abroad.

While the fixed rates included in the rates of the Rate Law were increased by 50 percent; The fee for non-commercial telephone use permit that passengers bring from abroad for their own use has been increased from TL 6,091 to TL 20,000.

Thus, there was a 228 percent increase in the authorization rate of mobile phones brought from abroad.