- The application of Value Added Tax (VAT) exemption on the delivery of goods and performance of services in relation to the construction works performed under the investment incentive certificate for manufacturing industry and tourism sector, is proposed to be extended until 31 December 2025.
- According to the VAT Code, the first delivery of residences or workplaces to nonresidents are exempt from VAT provided that the consideration is brought to Turkey in foreign currency. In cases where the conditions are not satisfied, the seller and the buyer are severally responsible to fulfil the VAT liability together with the tax penalties and delay interest. If the residence or workplace that has been purchased within the scope of this VAT exemption is to be disposed in one year, the nonresident disposing the residence or workplace is responsible for payment of the unfulfilled VAT, for the reason that the conditions were not satisfied, prior to the disposal in the tittle deed registry. The Bill proposes to change the one-year disposal period to three years.
- The engineering services provided to taxpayers who manufacture in Turkey electric motor vehicles that they developed as a result of their research and development activities in Turkey, within the scope of the investment incentive certificate, are proposed to be exempted from VAT until 31 December 2023.
Source EY
