A value-added tax, also known as a goods and services tax in some countries, is a form of tax that is assessed in stages. It is applied to the price of a product or service at every stage of manufacture, distribution, and sale to the final customer. 1% VAT rate is applied for residences with a net area of less than 150 square meters in Turkey. Luxury or first-class quality residences within the borders of the metropolitan municipality might be subject to 8% or 18% VAT.