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Turkey COVID-19 VAT relief measures

  • Feb 1, 2021 | Richard Asquith

1 Feb - closed businesses in the cafes, cinemas, various sports facilities, tea gardens, internet cafes, amusement parks and Turkish baths sectors have had VAT payments suspended.

26 Nov - the implementation date of the new Accomodation Tax has been delayed again from 1 Jan 2021 until 1 Jan 2022.

1 Sep - the special higher consumption tax on high-valued cars has been raised. Most mid and expensive cars are imported into Turkey. The lower-tier tax brackets, which cover the bulk of the car market, were increased by 15,000 lira ($2,045) and 10,000 lira ($1,360), with tax rates remaining at 45% and 50%.

31 Jul - VAT has been reduced to 8% from 18% until 31 December 2020 on the following: events and conferences; cultural events; domestic repairs; accomodation services; hospitality services

24 April - all other businesses (see sector exceptions below) may delay Value Added Tax payments and filings for the months of February and March, or Q1 2020. The new filing deadline is 28 April instead of 24 April.

9 April update - goods intended for export enjoy VAT payment deferrment for the exporters purchasing them (to avoid VAT credits). This deferment period has been extended.

The dealine for the upload of electronic ledgers and books has been moved from 31 March to 30 April 2020.

The Turkish tax office on 24 March introduced VAT payment reliefs in addition to last week's measuers. Several sectors will have their VAT returns for April, May and June delayed until 27 July 2020. VAT payments for April to June are delayed six months out to October to December.

The sectors include: automotive; accomodation; cinema; heath; publishing; pubic exercise facilities; and professional services.

Follow Avalara’s live  global coronavirus Covid-19 VAT measures tracker.

The VAT measures already announced, in place until November, include:

  1. The VAT rate on airline travel is to be cut on domestic flights from 18% to 1%. 
  2. Hotel accommodation and services are to be zero-rated. 

Other measures include suspension of national insurance payments on employees.

Explore more content like this in our Building for COVID-19 recovery hub

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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