Is it a toy or is it a layer of chocolate with a small toy in it? That’s the question for the Turkish government as the Treasury and Finance Ministry looks to change the status of the beloved surprise eggs to toys, according to the Turkish language daily, Dünya.
If the government goes ahead with the change, the value-added tax (VAT) on surprise eggs may go higher than the current 8%.
State-run Revenues Directorate, which currently works on VAT practices for firms, to detect irregularities in branding and packaging, will launch inspections. VAT regulations require the collection of taxes based on the larger volume of ingredients in a product composed of two distinctly separate ingredients, such as surprise eggs.
If the inspections decide that the small toys, which can be assembled by consumers, make up the larger part of the product, VAT will be implemented for toys. Standalone toys are subject to higher taxes than chocolate products.
The report by Dünya said the Revenues Directorate can also impose retroactive fines on companies.