Türkiye Hikes VAT Rates for Goods and Services
The Turkish government recently published an urgent change in Turkey’s Value Added Tax (VAT) rates.
The standard VAT rate will increase from 18% to 20% and the reduced VAT rate from 8% to 10% effective from 10th of July 2023.
Impact
Given the urgency of these changes, we recommend you review any financial or operational procedures impacted by these new VAT rates as quickly as possible. The increased VAT rates will be effective in only three days, leaving businesses with a very short window to update the Turkish VAT rates in the systems they use to calculate tax.
How Fonoa Can Help
Fonoa's tax engine can help you stay on top of even the most last-minute changes to tax rules and regulations. Turkey recently announced an increase in the VAT rate one working day before it went into effect - our research teams caught this change in lightning speed and our operational teams updated the rate in our tax engine within the hour, ensuring that all of our clients remain fully compliant. These sudden changes are not uncommon, and businesses managing tax automation internally often struggle to keep up, rendering them non-compliant and demonstrating the value of a well-maintained tax automation solution.
Contact Fonoa to learn more.
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