Which product has a changed VAT rate in the presidential decree announced in the morning?

After a cabinet meeting held on March 28, 2022, the president issued a statement. In this statement, he specifically emphasized that some products will have higher VAT rates and some will have lower VAT rates. Immediately after the evening speech, Presidential Decree No. 5359 was issued, which included rules on issues discussed in the official bulletin issued that morning.But The effective date is April 1, 2022. Is specified as.

In accordance with Presidential Decree No. 5359, the VAT rate for some products has been reduced and some have been raised.Even if you live Class style The VAT application we call has also been abolished. Let’s see what these regulations are.

Residential VAT rates have decreased and increased

Presidential Decision No. 5359 has increased the VAT rate applicable to the delivery of homes with a net area of ​​less than 150 square meters from 1% to 8%.

housing On sale; 1% for homes with a net area of ​​up to 150 sqm, 18% for homes with a net area of ​​150 sqm or more. The VAT rate is 18% on land, land and store sales, regardless of square meter.

However, in luxury homes within the boundaries of metropolitan areas (As of January 1, 2013 (If a construction permit is obtained) Tax amount per square meter of land

“For home construction projects where building permits are granted after January 1, 2017 (including this date) and bids are placed by public agencies and organizations and their affiliates after January 1, 2017.
a) The tax rate on delivery of residences between TRY 1,000 and TRY 2,000 (including TRY 2,000) specified in subparagraph (c) of the first paragraph of this article.
b) The tax rate for the delivery of homes over TRY 2,000, as specified in subparagraph (a) of the first paragraph of this article.
Applies.“” hIt was erased. This is a class-based incremental It is called customs duty.Presidential decision No. 5359 So-called class This application will also be removed.

Net area 150 square metersThe VAT rate applicable to the delivery of the following homes has been increased from 1% to 8%.

The VAT rate, which was 18% for land and land delivery, has been reduced to 8%.

However Building permit was obtained before April 1, 2022 Or for housing built within the scope of the project bid by public institutions and organizations and their affiliates Old edit so Will continue..

About food and detergent

Detergent, soap, toilet paper, napkins, baby diapers, disinfectants, wet wipes, paper towels, tissue paper, toothbrushes, toothbrushes, dental threads. Presidential decision No. 5359 It decreased from 18 percent to 8 percent. However, this will be reflected in the market on April 1, 2022. Or is it really reflected?Time shows it

VAT rates for diapers and women’s napkins have also been reduced

Article 9 of Presidential Decree No. 5359 “The goods contained in Turkey’s tariff table position 9619.00 have been split into statistical positions in the annex of the presidential decision of number 5045 as of December 30, 2021.” The VAT rate has been reduced from 18% to 8%.

The products included in the above rates consist of products such as sanitary napkins, diapers for the elderly, pads for the elderly, baby diapers, sanitary towels and tampons.

Increased value-added tax on used cars

The VAT rate has been raised to 18% for vehicle deliveries by people dealing with special tax-based used car land vehicle transactions.

The VAT rate for yachts, boats, boats and cruise ships has been increased from 1% to 18%. That’s why it was 1% so far I can hear you.

There is a food discount.

The separation of food and beverage services such as first class facilities and 3 star hotels has ended and 8% will be applied to all of these services. Alcohol is not included in this range.

So can these rates be reduced to zero?

In the last paragraph of Article 73 of the Constitution, the President was empowered to change the tax rate. However, in order for the president to exercise this power, it is necessary to write in his own law how much and at what intervals this rate will change. For this reason, in his own law, the president should be given this authority first and then state how much he will use this authority. Otherwise, it seems unlikely that the president will exercise this authority.

VAT method m.28 “The VAT rate is 10 percent for each taxable transaction. The president wants to increase this rate up to four times Up to 1%… “ As you can see in the clause, the president can reduce the VAT rate up to 1 percent.

For this reason, it is very appropriate and justified and is used in the media and social media. Value-added tax on diapers reset by the president’s decision Such a statement does not seem to be technically possible. Legal regulations must also be enforced to reduce it to zero.