- Türkiye’s VAT exemption for domestically sourced inputs under the inward processing procedure expired at the end of 2025 after 27 years.
- Exporters now must pay VAT on domestic purchases, with refunds only available through standard processes, increasing financial pressure.
- The change is expected to particularly impact export-oriented SMEs, which make up nearly 30% of Türkiye’s exports and often have tight margins.
- Exporters warn the removal of the exemption will hurt liquidity and force reliance on high-interest loans.
- Industry leaders urge the government to reconsider or modify the policy to continue supporting export-driven production.
Source: turkiyetoday.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.
Latest Posts in "Turkey"
- Turkey Mandates Electronic Fiscal Devices in Taxis for Accurate Tax Reporting Starting 2026
- Türkiye Introduces CPA Certification for Nondeductible Import VAT from 2026
- Türkiye Mandates CPA Certification for Nondeductible VAT on High-Value Imports from 2026
- Council of State Expands VAT Exemption to Auction Sales of Immovable Properties Held Over Two Years
- Announcement: Changes to VAT Return Form Effective from January 2026 Tax Period
