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Value Added Tax (VAT)• VAT is applied upon the sale of most goods and services, at varying rates, depending onthe nature of goods and services being sold. 18% is the standard rate and reduced ratesof 1% and 8% apply for certain basic food items, restaurants, education costs, booksand paper. Companies registered for VAT may set off the VAT paid on their purchasesagainst VAT charged on sales.• VAT is also paid on the importation of goods to Turkey, at the applicable rates. Whilstthis tax must be paid separately the amount of it may be set off against VAT on sales.• Exports of goods are not subject to VAT also the export of services is not subject to VATwhere they have been performed outside of Turkey or are clearly benefits a placeoutside of Turkey.• Where input VAT (on purchases) exceeds output VAT (on sales) the balance is carriedforward to be set off against future months’ payable tax. Generally a refund is notavailable except in the case of exporters who can apply for a refund, and this can bemade after certain inspections.• VAT returns are submitted monthly.• There is no minimum threshold for being subject to VAT.7