With the published Communiqué and VAT General Implementation Communiqué (VAT GUT), II. titled “Exceptions”. Amendments and additions have been made in line with the relevant legislative changes, and the amendments made are summarized below:
- In the application of the Exemption Regarding Delivery and Services for National Security Purposes, with the addition made to the section of VAT GUT communiqué (II/B-7.6.), in case it is determined that the goods and services included in the exemption certificate issued by the national security organizations and the list approved by it do not meet the exemption conditions, the lost tax will be charged. It is envisaged that national security institutions will be responsible for penalties, interest and hikes related to this. The effective date of the amendment is 28.5.2022.
- In the Housing or Workplace Deliveries exception application, the period of one year prior to the relevant law change regarding the disposal of the residence or workplace has been replaced by three years in the sections (II/B-12.) and (II/B-12.3.) of the Communiqué. The amendment regarding the newly determined periods entered into force as of 1.5.2022.
- With the addition to the section titled “Construction Works within the Scope of Investment Incentive Certificate for Manufacturing Industry” (II/E-7.), the following explanations were made regarding the expanded scope of the exception as “Construction Works within the Scope of Investment Incentive Certificate for Manufacturing Industry and Tourism” and the application principles of the exception:
“7/A. Construction Works within the Scope of Investment Incentive Certificate for Manufacturing Industry and Tourism
In the temporary article 37 of the Law No. 3065 amended by the Law No. 7394, “The delivery of goods and service performances related to the construction works within the scope of the certificate to taxpayers holding investment incentive certificates for the manufacturing industry and tourism are exempt from value added tax until 31/12/2025.
In case the investment subject to the incentive certificate is not completed, the taxes not collected on time are collected from the buyer of the investment incentive certificate together with the default interest by applying a tax loss penalty. The statute of limitations for these taxes and penalties starts at the beginning of the calendar year following the date of the tax assessment or the situation requiring the penalty to be issued.
In this context, taxes incurred due to goods deliveries and service performances are deducted from the tax calculated over taxable transactions. Taxes that cannot be compensated through deduction are refunded upon the request of the taxpayer who takes action within the scope of exemption pursuant to the provision of Article 32 of this Law.
The President may extend the period in the first paragraph up to three years; The Ministry of Treasury and Finance is authorized to determine the procedures and principles regarding the implementation of this article. The effective date of the said provision has been arranged as 1/5/2022.
Click here to reach the VAT communiqué published on 28.5.2022 and the annexes no. 30 and 31 added to the VAT GUT with this communiqué.