Deliveries and services related to Turkey’s defence industry projects carried out by the Ministry of National Defence (MSB) or the Presidency of Defence Industries (SSB) will be exempted from Value-Added Tax (VAT), according to the Official Gazette Tuesday.
According to the amendment made to the Value-Added Tax general application communique, the deliveries and services carried out after December 25, 2021, for defence industry projects and carried out by these two institutions will be covered by this exception.
The amendment includes security institutions that want to provide goods and services and will be implemented upon approval by the Revenue Administration that the goods and services are within the scope of the exemption, Daily Sabah reported.
The communiqué also included a regulation regarding the implementation of a VAT refund for construction within the scope of the investment incentive certificate for the manufacturing industry to cover costs that could not be reimbursed through discounts.
Accordingly, the VAT refund application for construction conducted within the scope of the investment incentive certificate for the manufacturing industry, valid for 2020 and 2021, presented within the scope of the VAT general application communique, will also apply to the VAT tax that was incurred in 2022, 2023 and 2024 and could not be countered by discounts.