The Council of Ministers has approved a Decree to amend the VAT Law and impose a zero VAT rate on certain basic items from the date of the Decree’s publication in the Official Gazette (5 May 2023) until 31 October 2023. Clarifications regarding the basic goods that fall under the zero VAT rate were issued on Wednesday by the Tax Department.
The items that will be affected by this temporary measure include bread, milk, eggs, baby food, baby diapers, feminine hygiene products, and adult diapers.
It’s worth noting that pastries, rusks, and bread with added ingredients such as raisins or nuts are not included in the zero VAT rate. Similarly, snacks like chips, nuts, sweets, chocolates, and ice cream are not included.
All businesses impacted by the aforementioned amendment to the VAT Law must conduct a stock inventory prior to the implementation of the new provisions.
We are available to discuss the aforementioned update and provide any assistance you may require.