Single rate building proposal and evaluation in value added tax implementaiion in Turkey

Value-added tax; It is a very important fiscal policy tool in terms of its high share in public revenues and its flexible implementation. However, since it is a consumption-oriented indirect tax by its nature, it has often been criticized for the economic burden it creates on low-income people, and this situation has led to various protectionist practices in the eyes of the states. VAT model accepted as the prevailing opinion; It is a structure made up of a high standard rate, broad-based discounted rates, and numerous exemptions and exceptions. However, in many studies and evaluation of application results; the protectionist effect of the multiple rate system on low income earners could not have the desired effect; It is stated that classifying various groups of goods and services according to more than one tax rate and changing them frequently, as well as bringing many exceptions and exemptions, does not serve tax justice, and even creates a very difficult situation for practitioners by making the legislation and practice quite complex. All these reduce tax compliance and lead to the inability to achieve the desired efficiency in taxation of the potential base. In this study; VAT regimes and rate practices in various world countries were evaluated comparatively, and the multiple rate and single rate practices were examined with various approaches and the superior aspects of the single rate system were indicated. By examining the main problems in VAT practice in our country, the problems created by a multi-rate and complex tax system for taxpayers and tax administration are mentioned. A simple and plain VAT system with a single rate has been presented as a solution proposal, despite the current reduced rate refund and tax burden problems and the deficiencies of taxpayers in tax compliance.