- When applying for an incentive certificate for the first time, the budget for investment expenses specified in the certificate is based on analysis of price quantities, market conditions, and the size of the investment.
- Inflationary effects can disrupt plans and lead to unexpected deviations in investment budgets, requiring constant revision of the incentive certificate.
- This article discusses whether upward deviations in investment expenses specified in the incentive certificate will affect the application of VAT exemption, and whether factors like maturity, price, and exchange rate differences in incentive investments will be subject to VAT.
- The article is part of a series on VAT exemption for machinery and equipment deliveries under incentive certificates.
- VAT exemption is applied based on quantity rather than amount, and exceeding the specified amount in the exemption certificate will result in the excess amount not being eligible for VAT exemption.
- Changes in regulations allow for direct transactions without amendment to the list for purchases above or below the specified amount for each machinery and equipment in the list.
- It is important to ensure that purchases do not exceed the specified amount in the list attached to the certificate to be eligible for VAT exemption.
- A ruling by the Istanbul Tax Office states that VAT exemption under the KDV Law can be applied without the need for amendment to the list if the purchase does not exceed the specified amount.
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.
