Parents owe VAT

Your options Subsequently, increases in Value Added Tax (VAT) rates to provide resources to the budget were reflected as a further increase in school enrollments. The VAT difference requested by school administrators from parents varies depending on the annual fee and monthly fee amounts of the private school.

SURPRISE VAT

The letter sent to parents informs that the VAT differences, which amount to 7 thousand liras per student, will not be transferred to the school and will be sent to the Revenue Administration (GİB). The debt letters sent also caused tensions between parents and the school administration. VAT rates were increased by 2 points by Presidential Decree published in the Official Gazette dated July 7, 2023. With the decision, the VAT applied to educational services was also increased to 10 percent. However, at private schools, school fees are typically determined years in advance and tied to automatic increases for subsequent years, and bills are reduced after installment payments, leaving parents to face surprise debts. . School administrations had to issue new invoices adding 10 percent VAT as schools opened and installment payments began. Parents who pay school fees in installments will additionally pay the VAT difference after each installment in the coming months.

The refund was made during the pandemic.

The VAT difference varies depending on school enrollment. For example, parents whose annual school tuition is 100,000 lira will have to pay a VAT difference of 1,683 lira, and those whose annual school tuition is 300,000 lira will have to pay a VAT difference of 5,050 lira. In the letter sent to parents, it was also shared that VAT was reduced from 8 per cent to 1 per cent due to the pandemic and the difference was refunded to parents.