The Ministry of Treasury and Finance has released Communiqué No. 52 on Value Added Tax (VAT) on Thursday,  31 October 2024, which includes updates to the VAT General Implementation Communiqué.

These amendments address multiple facets of VAT application, enhancing tax consistency, clarifying exemptions and establishing audit requirements for various sectors.

The Communiqué clarifies the VAT exemption for imported goods compared to domestic purchases. Items like goods for national security and equipment for individuals with disabilities now receive consistent treatment in both the import and domestic markets.

Updates in line with Income Tax Communiqué No. 311 ensure uniformity in the VAT treatment of attorney fees imposed by courts, strengthening the connection between legal practice and VAT obligations.

In response to inflation, the thresholds for VAT refund claims that do not require audits, certifications, or guarantees have been increased from TRY 10,000 to TRY 50,000.

To standardise the application of VAT exemptions, it has been specified that these exemptions for the delivery, manufacturing, repair, and maintenance of sea, air, and railway vehicles apply solely to entities that lease or operate these vehicles. This clarification is intended to promote equitable tax application, based on previous rulings and administrative interpretations.

The thresholds for requesting reduced security and expedited refund certificates have been adjusted according to the latest revaluation rates.

The examples and terminology pertaining to maritime activities have been updated in the Communiqué.

Earlier, The Turkish government released a draft Communiqué detailing the amendments to VAT under Law No. 7524.The draft Communiqué (Serial No: 52) outlined the procedures and principles for implementing amendments to the Value Added Tax Law No. 3065, introduced through Law No. 7524 on 28 July 2024.