The “Communiqué Amending the Value Added Tax General Implementation Communiqué” prepared by the Ministry of Treasury and Finance Revenue Administration was published in the Official Gazette and entered into force.
Accordingly, delivery and services to professional organizations in the nature of public institutions for the construction of houses to be donated to disaster victims within the scope of the protocol signed with the Ministry of Interior Disaster and Emergency Management Presidency (AFAD) in places considered as disaster areas effective for general life due to the earthquakes on February 6, 31 It will be exempt from VAT until December 2024.
The scope of the exception will include the delivery and services to professional organizations in the nature of public institutions due to the construction of houses to be donated to disaster victims within the framework of the protocol signed with AFAD. The construction of non-residential structures (such as workplaces, factories, shopping malls, mosques, parks, schools, hospitals, social facilities) and purchases of goods and services for the modification, maintenance and repair of existing residences will not be within the scope of the exception.
Professional organizations can benefit from the exception
In order to benefit from the exemption, professional organizations that are public institutions will have to sign a donation protocol with AFAD.
The exception will cover the purchase of goods and services for the construction of the residence. Goods and services related to infrastructure works, inner-site roads, retaining wall, curtain wall, perimeter wall and the like for the construction of houses together will be evaluated within the scope of the exception. Purchases of goods and services related to the construction of playgrounds, garden arrangements, pools, pergolas, camellias, sports fields and the like will not be within the scope of the exception.
In addition, kitchen cabinets that are an integral part of the residences, bathroom cabinets and cloakrooms, panel radiators, combi boilers, shower cabins, bathtubs and similar items that cannot be dismantled and moved by the residents will be included in the scope of the exception, while furniture, white goods, curtains, chandeliers, televisions and similar items will be included in the exemption. will be held.
No exceptions will be applied to purchases of goods and services for the houses built by this institution, using cash donations to AFAD.
On the other hand, free delivery to AFAD of houses built by professional organizations in the nature of public institutions within the scope of the exemption will also be exempted from VAT. The exception will be applied to the deliveries and services made until 31 December 2024 to professional organizations in the nature of public institutions due to the construction of houses to be donated to disaster victims within the scope of the protocol signed with AFAD. The donation of the houses built after 31 December 2024 will not affect the exemption application. Professional organizations, which are public institutions, will be able to benefit from the exception regardless of whether they are VAT taxpayers or not.
The list of goods and services to be purchased within the scope of the project will be submitted to AFAD for approval.
Professional organizations in the nature of public institutions will prepare the application project for the houses they will donate and submit the list of goods and services to be purchased within the scope of the project to AFAD for approval.
After entering the list of goods and services approved by AFAD into the system in electronic form, professional organizations will be able to apply for an exemption certificate to the tax office they are affiliated with, with a copy of the protocol signed with AFAD, if they are liable for VAT, or to the tax office / bookkeeping office in the place where the houses to be built are located.
The exemption certificate will be given for a limited period of time stipulated in the project, provided that it does not exceed the period specified in the law. In case the periods are revised, the periods in the exception document will also be updated.
If the goods within the scope of the exemption are procured through import, the document in question will be submitted to the relevant customs administration. Those who buy goods and services will have their certificates closed as of the expiry date of the exemption certificate. In addition, the purchases of goods and services by taxpayers who deliver or perform services within the scope of the exemption will be subject to VAT according to the general provisions.
On the other hand, since the VAT exemption application will continue in the transfers and deliveries realized by the sale of immovable properties registered in the assets of the institutions before 15 July 2023, regulations and amendments were made in the relevant sections of the VAT General Implementation Communiqué.
With the VAT General Implementation Communiqué, a regulation was made that those who take action other than the project implementation, which is carried out by obtaining an exemption certificate before the implementation of the communiqué, or by applying the tax first and then returning it, should also obtain an exemption certificate as of January 1, 2024, within the scope of the project implementation.