VAT Reduction Practice Has Ended...

As will be recalled, and as announced in our Circular No. 21/86, the application period for the VAT rates reduced by our Government had most recently been extended to 30 September 2021 (inclusive).

As of 01.10.2021 (today), no new decision has been announced by our Government regarding the practice, and the practice in question has come to an end.

As of 01.10.2021 (today), as previously applied;
1. The VAT on accommodation/overnight stay services will be applied at 8%,
2. The VAT rate on food and beverage services within first-class restaurants, three-star and above hotels, holiday villages, and similar facilities will be applied at 18%.

We bring this matter to your attention given its importance.