The VAT Rate on Shuttle Transportation
VAT — Value Added Tax — is a consumption tax. The end consumer who buys the goods or the service is the party that actually bears the VAT. The tax is paid when buying both products and services. The VAT rate on shuttle transportation is the type of value added tax that applies to anyone purchasing an employee shuttle service or a school shuttle service. The other goods and services on which value added tax
VAT — Value Added Tax — is a consumption tax. The end consumer who buys the goods or the service is the party that actually bears the VAT. The tax is paid when buying both products and services. The VAT rate on shuttle transportation is the type of value added tax that applies to anyone purchasing an employee shuttle service or a school shuttle service. The other goods and services on which value added tax applies, beyond school and employee shuttles, are as follows:
- Products and services falling within commercial, industrial, agricultural and professional activities
- Imports of all kinds of goods and services
- Postal and telephone services, and similar radio and television services
- Games of chance
- Concerts and shows featuring professional artists
- Sales made at auctions and in customs warehouses
The various VAT rates across different sectors are set by the Revenue Administration. So what is the current VAT rate on shuttle transportation?
What Is the VAT Rate on Shuttle Transportation?
The VAT rate on shuttle transportation is 18%. Alongside this, under the explanation given in Value Added Tax General Communiqué Serial No. 117, published in the Official Gazette no. 28264 of 14 April 2012, purchases of employee transportation services relating to a shuttle service obtained for carrying staff along a defined route fall within the scope of VAT withholding . For general information on withholding and everything relating to value added tax withholding in 2019, click here to read our blog post.
The VAT rate we at Volt Lines apply to shuttle transportation as part of our employee transportation service is as follows:
The VAT rate applied to transportation services we provide through suppliers is 18%. However, for transportation we carry out with our own vehicles and which comes to more than TRY 1,000 including VAT, section (3.2.11) of VAT General Communiqué Serial No. 117 states that those listed in section (3.1.2) of the Communiqué shall apply VAT withholding at a rate of 5/10 on their purchases of transportation services relating to shuttle services they have established in order to carry staff, students, customers and the like along a defined route. That works out at 5/10 of 18%, in other words 9%. However, where the amount is below TRY 1,000 including VAT, the VAT rate will be 18% even if we deliver the service with our own vehicles.
