New VAT rates has increased rebar prices by 400 TL

According to the decision published in the Official Gazette with the signature of President Recep Tayyip Erdoğan, the 18 percent VAT rate applied to goods and services was determined as 20 percent. VAT rate applied in food and beverage sectors was increased from 8 percent to 10 percent.

The tax rate on consumer loans was increased from 10 percent to 15 percent.

AUTOMOTIVE INDUSTRY ALSO AFFECTED

The newly determined VAT increase will also apply to the automotive sector. The VAT rate on automobiles was also increased from 18 percent to 20 percent. Therefore, the tax on cars with 80 percent  SCT increased from 112 percent to 116 percent.

FEES INCREASED

The fixed fee amount, which is included in the tariffs subject to the Fees Law No. 492, published in the Official Gazette with the decision of the President, was increased by 50 percent.

The registration fee, which must be paid in order to use the phones brought from abroad, has been increased from 6,091 TL to 20,000 TL.

HOW WILL THE REBAR PRICES BE AFFECTED?

The VAT increase will also affect the iron and steel industry closely, and will be reflected in the rebar prices as an increase of approximately 300-400 TL.

While the price of rebar, which is sold at 600 USD, is 18,485 TL with 18 percent VAT, it will start to be sold for 18,799 TL with 20 percent VAT.

Under the execution of the Ministry of Treasury and Finance, the decision will enter into force on July 10, 2023, pursuant to Article 28 of the Value Added Tax Law No. 3605.