VAT Effect on the Turkey’s Furniture Industry!

VAT Effect on the Turkey’s Furniture Industry!
06 March 2019

VAT Effect on the Turkey’s Furniture Industry!

Furniture production in 2018 increased by 12% compared to the previous year and exceeded 21 billion TL. If the VAT discount, which activates the domestic market, continues, it is expected to create new jobs with the increase in production and sales.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - Furniture production in Turkey has exceeded 21 billion TL in 2018 rose 12% compared to the previous year. The sales of furniture products, which have been reduced by 8% compared to the previous year, increased by 11% compared to the previous year and reached TL 16 billion. If the VAT discount continues, it is expected to exceed 40 billion TL in production by 2023 and 25 billion TL limit in sales. As a result of the Total Fight Program on Inflation, the VAT reduction for the 2018 November Reduction in Turkey, as well as the consumer and the consumer, said that KDV VAT reduction has stimulated production and consumption. We hope that the VAT reduction will continue this year, in order to experience this mobility in the market in 2019 and to increase employment. Piy

Land The furniture sector has been revived by the VAT reduction.

Furniture exports to become an international player and last year to 3 billion 131 million dollars of exports to the signatory, indicating that address the needs of the internal market of 95% of the furniture produced in Turkey Erat, "Furniture exports significant strides have been made in terms of our domestic market sector is still of major importance . The main reason for the recent mobility was a VAT discount. Despite fluctuations, there was a large increase in both production and consumption. In order to keep the market alive, we expect that the VAT reduction in furniture will continue this year. 

Abilir Efficiency in production may increase depending on demands.

Oran We need to increase the demand for efficient use of production capacity, lar said Erat, referring to capacity utilization rates of 40% in small businesses in the furniture sector, 55% in medium sized and 80% in large scale. Stating that VAT reductions have increased domestic demands, Erat said, “In a period of sectoral contraction and fluctuations, we are delighted that the demand for furniture has increased. Increased demand means more efficient use of production capacity, which means increased employment. 

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