Amendments to the VAT law: A five-year limit is introduced for deducting carried forward input VAT, ….

VAT exemption for services at ports and airports for sea and air vehicles is changed to a partial exemption, not applicable to leisure vehicles. VAT incurred can’t be reclaimed but can be deducted as an expense for income or corporate tax calculation.
To address inconsistency, the regulation aims to eliminate preferential treatment for imports over domestic deliveries regarding VAT exemption for certain goods. A similar regulation is introduced for the Special Consumption Tax Law.
Deduction and refund of transferred input VAT in mergers, transfers, and divisions will be subject to tax audit to prevent misuse.
A five-year limit is introduced for deducting carried forward input VAT, after which the amount is transferred to a special account and cannot be directly deducted. Taxpayers can request a tax audit within three years to claim the VAT amount as an expense for income or corporate tax calculation.