- VAT exemption for services at ports and airports for sea and air vehicles is changed to a partial exemption, not applicable to leisure vehicles. VAT incurred can’t be reclaimed but can be deducted as an expense for income or corporate tax calculation.
- To address inconsistency, the regulation aims to eliminate preferential treatment for imports over domestic deliveries regarding VAT exemption for certain goods. A similar regulation is introduced for the Special Consumption Tax Law.
- Deduction and refund of transferred input VAT in mergers, transfers, and divisions will be subject to tax audit to prevent misuse.
- A five-year limit is introduced for deducting carried forward input VAT, after which the amount is transferred to a special account and cannot be directly deducted. Taxpayers can request a tax audit within three years to claim the VAT amount as an expense for income or corporate tax calculation.
Source Serdar Tasdoken
