VAT General Implementation Communiqué No. 55, published in the Official Gazette of 4 September 2025, introduced a number of changes to the VAT legislation.
VAT General Implementation Communiqué No. 55, published in the Official Gazette of 4 September 2025, introduced a number of changes to the VAT legislation. Under those changes:
1- Explanations and examples have been provided on how the calculation is to be made when VAT arising on purchases of depreciable fixed assets is included in the input VAT for refund purposes. Accordingly, an allocation may be made from the input VAT relating to the fixed asset in respect of the portion incurred in connection with transactions giving rise to a refund entitlement, and not eliminated through deduction, from the date on which the fixed asset actually began to be used in those transactions.
The value of the transaction subject to the refund claim must be proportioned to the total value of all transactions in which the fixed asset has been used from the period in which the asset was capitalised and actually began to be used, up to and including the period for which the refund is claimed, and an allocation must be made from the input VAT relating to the fixed asset in the amount corresponding to the ratio attributable to the transaction subject to the refund claim.
Where the fixed asset continues to be used in transactions giving rise to a refund entitlement in subsequent periods, the VAT that may be allocated from the fixed asset to the refund calculation is determined by proportioning the total value of the transactions giving rise to a refund entitlement, including the period for which the refund is claimed, to the total value of the transactions in which the fixed asset has been used, including that period. After deducting the VAT already allocated from that fixed asset to the refund calculation in earlier periods, the remaining amount is the VAT to be allocated to the refund calculation for that period.
2- Under paragraph (4) of Article 16 of the Special Consumption Tax Law, the special consumption tax amount forming the basis for the collateral on goods imported against collateral has been added to the VAT base on importation, and explanations have been provided on this point.
3- Explanations have been provided on the exemption provision added to Article 17/4-p of the VAT Law concerning deliveries of immovable property by foundations and deliveries of land and plots by the Urban Transformation Directorate.
4- Under subparagraph (o) added to Article 13 of Law No. 3065, motor vehicles used for the carriage of goods for national defence and internal security needs, with a maximum weight not exceeding 3.5 tonnes and a passenger carrying capacity below 50% of the payload, have been brought within the scope of the exemption, and explanations have been provided on this point.