- The Turkish tax administration treated the transfer of a deceased spouse’s business to a single heir, after the other heirs waived their rights, as the termination of a partnership rather than a tax-free inheritance continuation.
- As a result, VAT is to be charged on the total transfer price in the invoice issued by the partnership, without splitting between the heir’s own share and the acquired shares.
- The VAT shown on that transfer invoice can be deducted by the successor under general VAT rules.
- The ruling does not allow the old business’s carried-forward/input VAT to be automatically transferred to the new taxpayer; it distinguishes that from the VAT charged on the devolution transaction itself.
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.
Latest Posts in "Turkey"
- Important Notice on Transition to New e-Declaration System for VAT Returns
- Turkey’s 2026 E-Invoicing and E-Ledger Threshold Changes
- VAT Refunds for Non-Resident Companies in Turkey
- Turkey’s E-Invoicing Thresholds and Mandatory e-Arşiv Rules
- Turkey Clarifies Tax Treatment for Paid Subscription Income on Social Media
