Council of State Expands VAT Exemption to Auction Sales of Immovable Properties Held Over Two Years

• The Council of State ruled that real estate sales by corporate taxpayers, held for at least two years, are exempt from VAT even if sold at auction.
• This decision resolved conflicting rulings between the Konya and Istanbul Regional Administrative Courts.
• The exemption applies as long as the sale is not part of a commercial real estate trading activity.
• The ruling is based on Article 17(4)(r) of the VAT Law and applies to regulations in effect until July 15, 2023.
• The decision provides clarity and sets a precedent for VAT exemption on auction sales of real estate by corporate taxpayers.

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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