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Turkey Extends Temporary Reduced VAT Rates for Various Goods and Services — Orbitax Tax News & Alerts

Turkey's Revenue Administration has announced the publication of Decision No. 3318 of 22 December 2020, which provides for an extension of the temporary reduction of VAT rates that was provided for certain goods and services in light of the COVID-19 pandemic. This includes an 8% rate for various goods and services and a 1% rate for entrance fees for cinemas, theatres, operas, etc. ({News-2020-08-05/A/8-previous coverage}). Previously scheduled to expire 31 December 2020, the application of the reduced rates is extended until 31 May 2021.

In addition to extending the reduced rates, the decision provides for the application of a 1% VAT rate on the import and supply of approved COVID-19 vaccines. This generally applies from 23 December 2020 to 31 December 2021.