VAT increase in Turkey

The General Authority of Gazette has increased the rate of Value-Added Tax (VAT) on all goods and services from 18% to 20% with effect from July 10, 2023

Understanding the Impact

As a consequence of the proposed VAT increase in Turkey, import-related costs and services including the VAT payable on imported goods and the provision of related services such as importer of record services (IOR), customs brokerage, and certification services will increase by 2% from the date of effect of the VAT changes.

Clients should expect to see the VAT increase incorporated in IOR Global invoices being sent to clients from August 2023 onwards; that is, in respect of importer of record (IOR) services provided during August 2023 and thereafter.

Clients should obtain separate legal and tax advice in relation to the specific impact that the new VAT changes may have on current business and pricing models.