Contract for construction in return for land share (KKİS) is a crucial agreement concerning VAT refunds. This type of contract involves mutual obligations between the landowner and the contractor. The landowner agrees to construction on their property and handles necessary procedures, while the contractor completes the construction according to the contract terms. Under the VAT Law, these projects are viewed as two separate deliveries: the land delivery and the independent unit delivery. The tax liability arises when the contractor delivers the independent units to the landowner. Different contract types, such as revenue sharing, also exist for construction in return for land share, and the contractor issues invoices and calculates VAT for independent units sold to third parties. While contracts in our legal system generally aren’t subject to strict formal requirements, the KKİS is considered a work contract and a promise to sell real estate, thus requiring an official form.
Source: alomaliye.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.
