Clarification on VAT for Package Services in Restaurants and Cafes

The Ministry of Treasury and Finance is preparing to end the confusion regarding the VAT rate applied to package services in restaurants and cafes. The draft regulation on this issue has been published on the website of the Revenue Administration. Minister of Treasury and Finance Mehmet Şimşek stated, “We have not increased the VAT rates! We are taking measures to prevent abuses.” The Disinformation Combat Center (DCC) also provided information on the issue through its social media account.

The Ministry of Treasury and Finance clarified the VAT rate applied to package services in restaurants and cafes. Last year, with the Presidential Decree published in the Official Gazette on July 7, the VAT rate for food and beverages sold in restaurants and cafes was increased from 8% to 10%, and for alcoholic beverages, it was increased from 18% to 20%.

Although packaged food and non-alcoholic beverages sent through delivery services are subject to a 10% rate, it was found that some restaurant and cafe businesses applied a 1% VAT rate for package services. With the draft regulation published on the website of the Revenue Administration, clarity will be brought to the VAT application for package services, and examples are provided in the draft on how the application will be.

In the announcement by the Revenue Administration, it was emphasized that explanations were made to eliminate the doubts in the application of VAT rates in places providing food and beverage services, within the scope of the regulation listed as 24th in the Annex (II) of the Council of Ministers Decision numbered 2007/13033. It was noted that there has been no increase in the current VAT rates (%1, %10, and %20).

According to the regulation, the VAT rate will be applied at 10% for the delivery of food and beverages produced or procured from outside and sold through online or telephone orders for delivery to the address or for takeaway.

STATEMENT FROM MINISTER ŞİMŞEK

Minister of Treasury and Finance Mehmet Şimşek made a statement from the X account:
We have not increased the VAT rates! We are taking measures to prevent abuses.