29.05.2021

  • As of 2/10/2019, with the Presidential Decision No. 1594;

The VAT rate of attorney services provided within the scope of the followings has been determined as 8%. The VAT rate is 18% for attorney services other than those listed below:

– Cases and affairs which are in the jurisdiction of family courts, consumer courts and juvenile courts,

– Guardianship cases and affairs,

– Legal remedies regarding the above-mentioned cases,

– Mediation as a condition of cause of action in labor disputes,

– Judgment execution proceedings related to the above-mentioned

In this context, for example, 8% VAT must be calculated for the attorney services provided within the scope of the execution proceedings based on the judgment regarding alimony and compensation enacted by the family court.

Since the attorney services provided regarding the Consumer Arbitration Committee application and the follow-up proceedings with and without a judgment initiated as a result of this application cannot be evaluated within the scope of B/32nd line of the list numbered 2007/13033 in the Annex (II) of Council of Ministers Decision, VAT will be applied at a general rate (18%) in the self-employment receipts issued for these services.

What is the VAT rate in mediation services?

  • With the Presidential Decree No. 1594, the VAT rate of the attorney service provided by the attorney of the party who represents him/her in the mediation process as a condition of litigation regarding labor disputes is determined as 8% and there is no determination regarding mediation service in the Decision. In this context;

– Since it is not possible to evaluate the mediation service, which is a condition for litigation in labor disputes by an attorney mediator (or a mediator who is not an attorney), within the scope of the B/32nd line of the list (II) of the annex of the relevant Council of Ministers Decision, VAT must be calculated at a general rate (18%).

– As a condition of litigation related to labor disputes, 8% VAT must be calculated in the self-employment receipt to be issued by the attorney of the party representing him/her in the mediation process.

Source: Revenue Administration of Turkey – Translated by: Karen Audit
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