An Overview of VAT Exemption for Incentivized Investments

• Incentives are policy tools applied in a country to increase investments, support economic growth, increase employment, and gain a competitive advantage.
• Investment decisions are based on a combination of factors, including certainty, predictability, and continuity, as well as tax incentives provided to investors.
• The focus of the article is on the VAT exemption provided to incentive-certified investments.
• There are two main regulations related to VAT exemption for incentive-certified investments: Article 13/d of the VAT Law and Temporary Article 37 of the VAT Law.
• Article 13/d exempts machinery and equipment purchases, software and intangible rights acquisitions from VAT for investment certificate holders.
• The investor must be a VAT taxpayer to benefit from the VAT exemption for incentive-certified investments.
• Non-VAT taxpayers, such as associations, foundations, or public institutions, cannot benefit from the VAT exemption for investment expenses covered by the certificate.

Source: kpmgvergi.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---