The Turkish government has released a draft Communiqué detailing the amendments to VAT under Law No. 7524.The draft Communiqué (Serial No: 52) outlines the procedures and principles for implementing amendments to the Value Added Tax Law No. 3065, introduced through Law No. 7524 on 28 July 2024.
Before the draft is finalised for publication, stakeholders are invited to submit their opinions and suggestions regarding potential developments, changes, or contributions. Feedback can be sent to “gorkem.sir@gelirler.gov.tr” by Monday, 16 September 2024.
The draft Communiqué outlines key VAT matters, including the application of VAT on attorney fees imposed by courts or enforcement offices on the losing party, and VAT exemptions for the delivery, modification, maintenance, repair, manufacturing, and construction of sea, air, and railway transportation vehicles.
It also covers VAT exemptions for services provided at ports and airports, as well as for the delivery of machinery, equipment, and the sale or lease of software and intangible rights under an investment incentive certificate.
Additionally, the draft includes VAT exemptions for deliveries and services related to construction projects in earthquake-affected areas by foreign entities. It highlights the requirement for a tax audit to deduct input VAT carried forward from acquired companies and mandates a positive tax audit report for VAT refund claims.
