Decree of the Council of Ministers Regarding the Redetermination of Some Ratios in Stamp Tax, Vat and Special Consumption Tax Published
Important amendments made through the Decree of the Council of Ministers No. 2017/9759 published in Official Gazette dated 3.2.2017 are as follows;
The ratio of stamp tax to be collected from Real Estate Preliminary Sales Contract and prepaid house sales contracts has been reduced to zero.
In housing construction projects whose construction license was obtained between 1.1.2013 and 31.12.2016, and in housing construction projects whose tenders were lodged by the public as of 1.1.2013; the ratio of VAT has been determined as 8% for the delivery of houses whose land m2 tax value is between 500 TRY and 1.000 TRY and as 18% for the delivery of houses whose land m2 tax value is 1.000 TRY and above.
As for housing construction projects whose construction licenses were obtained on 1.1.2017 and thereafter and whose tenders shall be lodged as of 1.1.2017, the ratio of VAT shall apply as 8% for the delivery of houses whose m2 tax value is between 1.000 TRY and 2.000 TRY and as 18% for m2 tax value being above 2.000 TRY.
8% VAT rate shall apply to the delivery of houses being subject to 18% VAT until 30.9.2017.
Due to the fact that fertilizers whose VAT is 1%, oilcake, full fat soy, bran, middlings, fish flour, meat flour, bone flour, blood flour have been included in the scope of exception with the article 13 of VAT Law No. 3065 by the Decision No. 2007/13033 regarding the Determination of VAT Ratios, it has been removed from the relevant Decree.
1% VAT shall apply to the delivery of yachts, cruisers, boats and excursion ships.
For various sofa, chair, wooden furniture, metal furniture and other types, VAT ratio has been determined as 8% however, incurred VAT of goods delivered within this scope shall not be included in the return calculation due to discounted ratio.
The return limit has been decreased to 10.000 TRY in VAT incurred due to the deliveries and services subjected to discounted tax ratio by article 29 of VAT Law and which cannot be compensated through a discount.
Special Consumption Tax has been reduced to zero for excursion ships taking part in the list (II) attached to Special Consumption Tax Law, pertaining to sailing and not exceeding 18 Gross tonnage; passenger and excursion ship which does not pertain to sailing and yachts, cruisers, boats and excursion ships.
The ratio of Special Consumption Tax for some domestic appliances such as air conditioners, refrigerators, water heaters, washing machine, dish washer and vacuum cleaner until 30.4.2017.
Prepared for information purposes only.