The Communiqué Amending the VAT General Implementation Communiqué (No: 47), published in Official Gazette No. 32302 of 7 September 2023, has entered into force.
– Under temporary Article 44 added to Law No. 3065 by Article 9 of Law No. 7456, published and entered into force in Official Gazette No. 32249 of 15 July 2023, provision is made for the exemption applicable until 31 December 2024 to supplies and services made to professional organisations having the character of public institutions in connection with the construction of dwellings to be donated to disaster victims under a protocol signed with the Disaster and Emergency Management Presidency, in places accepted as disaster areas affecting general life because of the earthquakes of 6 February 2023.
– Since the change made by Article 7 of Law No. 7456 to subparagraph (r) of paragraph (4) of Article 17 of Law No. 3065 removed the VAT exemption on transfers and supplies effected through the sale of immovable property held in entities’ assets, provisions and changes are being made in the relevant sections of the VAT General Implementation Communiqué. In addition, since under temporary Article 43 added to Law No. 3065 by Article 8 of Law No. 7456 the VAT exemption will continue to apply to transfers and supplies effected through the sale of immovable property recorded in entities’ assets before 15 July 2023, provisions and changes are being made in the relevant sections of the VAT General Implementation Communiqué.
– Doubts that had arisen in relation to financial leasing transactions concerning the effective date of rate changes made by presidential decree are being resolved.
– Provision is being made that those who, in respect of matters for which the VAT General Implementation Communiqué introduced a project-based regime, transacted outside that regime before the Communiqué came into force — whether by obtaining an exemption certificate or by applying the tax first and obtaining a refund afterwards — must also obtain an exemption certificate under the project-based regime from 1 January 2024.