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Turkey Provides 1% VAT Rate for Construction under Urban Transformation Projects — Orbitax Tax News & Alerts

Turkey's Revenue Administration has announced the publication of Presidential Decree No. 3470 of 29 January 2021, which amends the VAT rate for certain construction projects. This includes a reduction in the rate from 18% to 1% for the construction of residences under urban transformation projects, which applies for new buildings with a building area of up to 1.5 times the existing building area. The decree was published on 30 January 2021 and entered into force on that date.