Changes In VAT And Delivery Applications Under "Construction Agreements In Return For Land" In Turkey

In Construction Agreements in return for land, there are two types of delivery:

1. Delivery of land by the land owner to the contractor
2. Delivery of residence or workplace in return of land by the contractor to the land owner

The VAT situation in these deliveries in Turkish Law is;

• If the land delivered to the contractor is part of a commercial enterprise or the owner who delivered the land frequently deals in real estate trades, the delivery of land in return of residence or workplaces are subject to VAT applications. But if the land owner in situations where is not a real taxation obligatory, as an incidental process the delivery of land to the contractor in return for residence or workplace is not subject to taxation.