Announcement on Exemption About VAT Implementation

"Communiqué on  Amendments  to the Value Added Tax General Implementation Communiqué (Serial No: 47)" ("the Communiqué") has been published in the Official Gazette dated 7 September 2023 and  numbered  32302 by the Ministry of Treasury and Finance (the “Ministry”).         

The Communiqué introduced amendments that exempt Value Added Tax ("VAT") until 31 December 2024, for deliveries and services provided to public institutions and professional organizations with public institution status for the construction of housing to be donated to earthquake victims in areas designated as disaster zones due to the earthquake on February 6.           

Additionally, within the scope of the protocol signed between the Ministry and the Disaster and Emergency Management Presidency (DEMP), transactions within the scope of the exemption are listed.  It is also stated that the recipients benefiting from the exemption must be professional organisations in the nature of public institutions, regardless of whether they are VAT taxpayers or not

In the Communiqué, detailed instructions regarding the procedures, processes, and declaration of the exemption that professional organizations with public institution status should follow under this regulation have been provided.                    

The Communiqué also lists the necessary documents for refund requests that may arise for organizations benefiting from the exemption. It is also noted that organizations benefiting from the exemption will be jointly and severally liable for situations that may arise if they fail to inform the seller of the relevant situation in their purchase and sale transactions.                                                                                            

The Communiqué has entered into force on the date of its publication, effective as of 7 September 2023, and you may find the detailed provisions of the Communiqué in the Official Gazette.