Latest Home Price News: The Treasury has completed work on VAT simplification in the post-food housing sector. A new model that saves both consumers and the industry will be presented to President Recep Tayyip Erdogan.
The dual system, which is activated in response to consumer and sector demand, is expected to reduce the VAT burden of over 150 square meters by 18%. The calculation is based on the value of the house and the unit price per square meter.
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Treasury Minister Nureddin Nebati has announced that after taking the first step in food and being presented to President Erdogan, efforts to simplify VAT will be phased in. Both citizens and sectors have focused on reducing VAT in housing. The Revenue Department conducted a comprehensive survey of dual VAT systems, within the scope of work with chambers of commerce and sector representatives.
Home sale outlook
Sector representatives noted the fact that paying 18% VAT for residences over 1-2 meters would result in illegal activity. The project brought to the fore the idea of applying taxes to encourage the use of net square meters of homes on sales and ownership certificates.
Home price addition numbers will end
With the new model, consumers will not face a significant increase when they buy a 151-square-meter home.
Lower home prices
If the new system is adopted, the 150 sqm section will be taxed at 8% and the 1 sqm section will be taxed at 18%.
For example; 80,000 Lira VAT is paid for a 150 square meter flat of 1 million Lira, while 180,000 Lira VAT is paid for 155 square meters. Under the new system, a 5 square meter section will be taxed at 18%, which is 5805 lira. In this case, the amount paid will be 85,805 lira. Sector representatives say the regulation will increase demand for homes over 150 square meters, revive the sector and lower prices.
Therefore, consumers will not face an exorbitant increase in 160 square meters of homes. For VAT discounts for zero homes, the discount depends on the price.
The price of the title certificate is also in the table
Also, according to last-minute information, although the 1% application to urban transformation continues, it is expected that the deed fee will be adjusted. The deed fee is taken at a rate of 20/1000 of the value of the house. As of today, in a 1 million lira house, the buyer pays 20,000 lira and the seller pays a deed fee of 20,000 lira.
835,000 merchants do not submit declarations
Meanwhile, the Revenue Department has clarified the tax exemption of 835,000 small merchants such as hairdressers, beauty salons, plumbers, carpenters, carpenters, body shops, tire makers, tailors, and repairers. How to do it. Income tax According to the general communiqué, annual rents will be 12,000 lira in metropolitan areas in 2021, 7,600 lira elsewhere, and 16,000 lira in 2022 within the boundaries of metropolitan areas. Other than that, it is 10,000 lira. place. Income of small merchants that do not exceed Exceptional income is not included in the income tax return.
Two examples: For example, a taxpayer working as a beautician earns 35,000 lira in 2021 and has no other income. In this case, he is exempt from his income tax and does not file an annual income tax return. Taxpayers who have a simple procedure in the taxi business earned 45,000 lira in 2021. That same year, he earned a rental income of 25,000 lira from his home. In this case, income from the 2021 taxi business is exempt from income tax, so commercial income determined in a simple way will not be included in the annual income tax return filed as rental income.
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