Breaking News: VAT Reduction Announced for That Sector! According to the latest update, the VAT reduction announced by Treasury and Finance Minister Berat Albayrak has been welcomed with great relief. VAT for businesses operating in the food and beverage sector has been lowered to 1% until the end of the year. Representatives of a sector identified as one of the most affected during the pandemic called the decision a lifeline for the industry. They also stated that, in line with this decision, they plan to pass on price reductions.
In the breaking news update, Treasury and Finance Minister Berat Albayrak posted on his Twitter account last night that he brought good news to tradespeople ahead of the Eid al-Adha holiday. According to his announcement, tax reductions will be implemented for many sectors through the end of the year. Published today in the Official Gazette, the decision includes the food and beverage service sector among those eligible for the VAT cut. For these businesses, the VAT rate has been reduced from 8% to 1% through the end of 2020. The reduction of VAT in the food and beverage sector from 8% to 1% has been received positively across the industry.
VAT Cut in the Food & Beverage Sector Welcomed with Relief
The VAT reduction for the food and beverage sector has been welcomed with relief. Ramazan Bingöl, President of the Association of All Restaurants and Tourism Professionals, expressed hope that the decision will benefit the industry. Noting that the sector was among those hit hardest by the coronavirus pandemic, Bingöl extended his good wishes for the recovery. He indicated that restaurants will apply a 7% price reduction alongside the VAT cut and that they expect an increase in turnover of around 20–30% as a result. Employing two million people and generating roughly 140 billion TRY in annual turnover, the sector has received a significant measure of support during this challenging period. Ramazan Bingöl expressed his gratitude to President Recep Tayyip Erdoğan and to Treasury and Finance Minister Berat Albayrak for this support.