KDV Meaning and
Definition
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KDV is an acronym that stands for "Katma Değer Vergisi" in Turkish, which translates to "Value Added Tax" in English. It is a term used in the tax system of Turkey to refer to a specific type of tax levied on the sale of goods and services.
KDV is a consumption tax imposed on the incremental value added at each stage of the production and distribution process. It is designed to be paid by the end-consumer but is collected in stages from producers, suppliers, and service providers. This ensures that the tax burden is distributed throughout the supply chain, with each participant contributing based on the value they add to the final product or service.
The KDV rate in Turkey can vary depending on the nature of the good or service being sold. Basic goods and services such as food, healthcare, and education may have lower or even zero rates, while luxury or non-essential items may attract higher rates.
The revenue generated from KDV plays a crucial role in funding government expenditures and public services. It is an important source of revenue for the Turkish government, enabling them to finance infrastructure projects, social welfare programs, and various other public initiatives.
Compliance with KDV regulations is essential for businesses operating in Turkey, as failure to comply can result in financial penalties and legal consequences. The implementation and administration of KDV are overseen by the Turkish Revenue Administration (Gelir İdaresi Başkanlığı).
Common Misspellings for KDV
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