VAT rates increased as of 30/12/24

[laptawrinkly]

And a Happy New Year to all!


https://www.kibrispostasi.com/c50-EKONO ... ik-yapildi 30/01/2024

VAT rates have changed!

Accordingly, the rates of products with a VAT rate of 0 percent were increased to 5 percent to 10 percent, and the VAT of products with a VAT rate of 5 percent was increased to 10 percent.
In this context, the VAT rate of approximately 54 products, including basic food products, has increased.

Those whose VAT rates were increased from 0 percent to 5 percent are listed as follows:
• Bulgur wheat
• Rice
• Pasta
• Noodle
• Semolina
• Tarhana
• Sesame
• Dried Legumes
• All Kinds of Dairy Products
• Baby food
• Small and Large Animal Meats
• Poultry Meat
• Fishes
• Egg
• Fresh Vegetables
• Olives and Olive Oil
• Edible Table Liquid Vegetable Oils
• Cat and Dog Food, Bird Food and Ornamental Fish
• Paluze and Meatballs
• Medical Masks and Examination Gloves
• All kinds of medical and veterinary services and related laboratory and imaging services (excluding nutrition and dietetic (diet) services, physiotherapy and rehabilitation services, services provided by psychologists, but including services provided in elderly care homes with permission from the Ministry of Health)

The following items have had their VAT rates increased from 0% to 10%:
• Nutrition and Diet Services
• Physiotherapy and Rehabilitation Services
• Services Provided by Psychologists

The VAT rates increased from 5 percent to 10 percent are as follows:
• Detergent
• Solid and Liquid Soaps
• Shampoos
• Surface Cleaner Drugs
• Antiseptics
• Paper Towels
• Paper Napkins
• Toilet Papers
• Paper Tissues
• Wet Wipes
• Freezer
• Freezer
• Fireplace
• Oven
• Microwave
• Washing machine
• Clothes Dryer
• Dishwasher
• TVs
• Inverter Air Conditioners
• Double stage, push cistern and double stage, push cistern internal parts
• Restaurant (Including Restaurant Services Offered in Tourism and Accommodation Establishments)
• Bagel House
• Patisserie
• Coffee shop
• Buffet
• Cafeteria
• Cafe and Similar Catering Services
• Cooked Meals Sold Retail in Markets and Similar Places, Including Takeaway, Package Services and Alcoholic and Non-Alcoholic Beverages Served in These Places
• Exclusive Accommodation Services related to Tourism Activities

[waddo]

So, minimum wage will be interesting next month - a minimum of 25% I would guess at!

[Keithcaley]

Doomed!

We're doomed!

[Soner]

You couldn't make it up. 2025, interesting times in TRNC.
Could be the straw that breaks the camel's back.

[Reyntj]

Its 12% cost of living for the last period i think..& everyones been on strike because they are changing the calculation moving forward i can t quite work out to what just its going to be less..

Paying relatively high salaries is a very poor strategy in such a poor economy..the increase in vat is unlikely to be the end of it as there is a shortfall in the budget to pay the salaries...its a spiraling circle..

[waddo]

Spiraling downward sadly. The markets will just add 10% to all prices to start the ball rolling, regardless of any increase on any product, silly really but just out for the profit in the end.

[Reyntj]

Cant see who would buy a new property here now with aporoaching 20% buying costs on massively over priced flats in iskele..built on contested land..

Surely the builders will fall like dominoes..
The resale value of these flats is 50% of the new prices and a glut for sale of foreigners trying to escape the high taxes the high living costs poor infrastucture increasing residency rules and general animosity to them.
This may become one of the most expensive countries in the world frequented only by money launderers...aka switzerland.


They fxxxed everything
Little off topic
Rant over
Happy new year..

[TAC]

Looks like a u turn now
https://cyprus-mail.com/2024/12/31/nort ... s-vat-rate

[Reyntj]

Its too late instead of increasing salaries by only 30% like in turkey they gave huge increases without the means to pay them ...it has to come from somewhere..turkey wont be bailing them out

Tax rises across the board inevitable. The only places trnc can borrow money from is turkey and local banks. Good luck with that.
.

[frugal90]

This doesn't end well, doom spiral!

[Jeremy S]

Sadly, I have to agree with Reyntj. The economy is crumbling fast, and foreigners are no longer wanted. Government legislation on property title and ownership, plus extortionate taxation, has gotten out of hand. It's time to sell up (if there are any buyers) once our (if) Villa Kocan and tax issues are sorted.

[Maisiemoo]

So glad I have just sold and will now only visit as a holidaymaker.

[Reyntj]

https://www.dailysabah.com/business/eco ... -inflation

As night follows day...
Tax rises here inevitable

We went to ezic for lunch .670 tl for fish& chips.
£15.50. if the new kdv hike comes in probably after the pay rise of c12% it will cost the restaurant 5% more on food then 5% more on the bill plus wages they will just hike the price to c £20 equivalent for a cafe bistro meal..

Id really consider not going in future ..
They clearly need to increase kdv imo its a question of when not if unless they cut everyones salary..goverment between a rock and a hard place of their own making.

The tl to $ has only decreased by 16% in 2024 and yet the budget for 2025 has gone up 73%...68% of which is salaries...not rocket science that this huge extra increase will result in many sizeable tax rises.

[waddo]

https://cyprus-mail.com/2024/12/31/nort ... s-vat-rate - Happy New Year??

[Charlieboy]

Third world country first world prices

[snd1966]

The restaurant owners and union have put in for a review so it may not happen on all the items

[Reyntj]

How will they find this years budget wiich is 73% more than 2024?

[snd1966]

How will they find this years budget wiich is 73% more than 2024?

I dread to think...

[snd1966]

How will they find this years budget wiich is 73% more than 2024?

I dread to think...

But they are allowing left hand cars to be imported properly but have to be completed by the 31st

[benjaminbutton]

I haven't done my maths yet, but I think our monthly regular income which will be demanded in August for Residency, is not going to be sufficient for them to grant it. So the decision as to whether to stay or whether to go will be taken away from us in any case. This will be give all those people back in the UK 20 years ago, the chance to say "we told you so".