Turkey Amends Rules For Value Added Tax, Introducing New Exemptions

Turkey has announced a range of amendments to the tax regime, as well as new VAT exemptions. A new tax base calculation is introduced for sale of secondhand vehicles and immovable property. Time limits are also introduced where sellers must repay buyers for excessive and unfairly calculated tax inputs.

The Law Concerning Certain Changes to the Value Added Tax Law and Certain Laws and Statutory Decree number 178 ("Law") was published in Official Gazette number 30383 on 6 April 2018.

The Law introduced the following amendments:

• The VAT system has changed for construction done in return for land shares, so that now:
  • The land owner will be deemed to have delivered the land share to the contractor in return for the residential house or workplace. Similarly, the contractor will be deemed to have delivered the residential house or workplace to the land owner in return of the land share.