New VAT Deduction Ban in Imports: Implementation Principles and New Sworn CPA Reporting Obligation

• Import VAT paid due to surveillance, safeguard measures, and anti-dumping/countervailing duties can no longer be deducted; these must be recorded as expenses or costs.
• The new regulation requires separating the source of import VAT in accounting records; lump-sum recording is no longer allowed.
• Firms must report compliance with these rules twice a year, with different procedures based on whether their annual import value exceeds 72,705,000 TL.
• Firms below the threshold submit a notification to the tax office; those above must obtain a Certified Public Accountant (YMM) report.
• The amounts in question are deductible business expenses, not non-deductible expenses for tax purposes.

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.

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