Value Added Tax Law

The following transactions carried out in Türkiye shall be subject to value added tax:

1. Deliveries and services performed within the scope of commercial, industrial and agricultural activities and self-employment (independent professional) activities,

2. Importation of all kinds of goods and services,

3. Deliveries and services arising from other activities:

a) Postal, telephone, telegraph, telex and similar services, and radio and television services,

b) Amended: 14/3/2007, Law No. 5602, Art. 10 Organising and playing all kinds of games of chance and luck,

c) Organising and staging shows and concerts featuring professional artists, and sporting activities, matches, races and competitions in which professional athletes take part,

d) Amended: 16/6/2009, Law No. 5904, Art. 8 Sales made at auction premises and in customs warehouses, and the delivery of product certificates issued under the Agricultural Products Licensed Warehousing Law No. 5300 dated 10/2/2005 to those who will withdraw from the warehouse the product represented by the certificate,

e) Transportation of crude oil, gas and their products by pipeline,

f) Leasing of the goods and rights specified in Article 70 of the Income Tax Law,

g) Deliveries and services of a commercial, industrial, agricultural and professional nature of establishments belonging or attached to, or established or operated by, general and annexed budget administrations, special provincial administrations, municipalities and villages and the unions formed by them, universities, associations and foundations, and all kinds of professional organisations, and of revolving fund institutions or other establishments belonging or attached to them,

h) Deliveries and services to be taxed by way of optional taxpayer status for the purpose of eliminating inequality in competition.

The continuity, scope and nature of commercial, industrial and agricultural activities and of self-employment activities shall be determined and established in accordance with the provisions of the Income Tax Law and, where the Income Tax Law is not explicit, in accordance with the provisions of the Turkish Commercial Code and other relevant legislation.

The fact that these activities are carried out as required by laws or official authorities, the legal status and personality of those who carry them out, whether or not they hold Turkish nationality, and whether or not their residence or place of business or legal seat or business centre is in Türkiye shall not change the nature of the transactions and shall not constitute an obstacle to taxation.

The fact that importation is carried out by the public sector, the private sector or any natural or legal person, or is realised in any form or manner, or has special characteristics, shall not affect taxation.

Delivery:

1. Delivery is the transfer of the right of disposal over goods by the owner or those acting on the owner's behalf to the purchaser or those acting on the purchaser's behalf. The handing over of goods to a place or persons indicated by the purchaser or those acting on the purchaser's behalf shall be deemed a delivery. Where goods are dispatched to the purchaser or those acting on the purchaser's behalf, the commencement of the transportation of the goods or their handing over to the carrier or driver shall also constitute a delivery of goods.

2. Where the right of disposal over goods is transferred by two or more persons by means of a chain of contracts and the goods are transferred directly to the last person without changing hands in the meantime, each of the intermediate stages shall be a separate delivery.

3. Distributions in the form of water, electricity, gas, heating, cooling and the like shall also constitute deliveries of goods.

4. Amended: 3/6/1986, Law No. 3297, Art. 1 Where it is customary for containers and packaging, as well as scraps and by-products, to be returned, the delivery shall be deemed to have been made in respect of the items other than these. The same provision shall apply where containers and packaging, and scraps and by-products, of the same kind and nature are returned in their place.

5. Barter shall be deemed two separate deliveries. Added sentence: 29/3/2018, Law No. 7104, Art. 1 For the purposes of this Law, in construction works carried out in return for land, the delivery of a land share by the landowner to the contractor in return for a residence or workplace, and the delivery of a residence or workplace by the contractor to the landowner in return for the land share, shall be deemed to have been made.

Cases deemed to be delivery:

The following cases shall be deemed delivery:

a) The withdrawal, in any manner whatsoever, of taxable goods from the business for purposes other than taxable transactions, and the giving of taxable goods to the business's personnel under such names as wages, premiums, bonuses, gifts or donations,

b) The use or consumption, in any manner whatsoever, of taxable goods for goods whose production and delivery are exempted from tax,

c) The transfer of possession in sales made with retention of title,

d) Repealed: 22/7/1998, Law No. 4369, Art. 82

Service:

1. Service means transactions other than delivery, cases deemed to be delivery and the importation of goods.

These transactions may take forms such as doing and processing something, creating, manufacturing, repairing, cleaning, preserving, preparing, evaluating, leasing, or undertaking not to do something.

2. Where the consideration for a service is a delivery of goods or another service, each of them shall be a separate transaction and they shall be taxed separately in accordance with the provisions on services or deliveries.

Cases deemed to be service:

Allowing the business owner, the business's personnel or other persons to benefit free of charge from a taxable service shall be deemed a service.

Performance of transactions in Türkiye:

Performance of transactions in Türkiye:

a) For goods, that the goods are located in Türkiye at the time of delivery,

b) Amended: 27/1/2000, Law No. 4503, Art. 3 For services, that the service is performed in Türkiye or is benefited from in Türkiye,

shall mean the foregoing.

International transportation:

In transportation carried out between Türkiye and foreign countries and in transit transportation, the portion of the service corresponding to the domestic route shall be deemed to have been performed in Türkiye.

Chapter Two

Taxpayer and Person Liable for Tax

Taxpayer:

1. The taxpayers of Value Added Tax are:

a) In cases of delivery of goods and performance of services, those who carry out these activities,

b) In importation, those who import goods and services,

c) In transit transportation, those who are subject to customs or transit procedures,

ç) Added: 29/3/2018, Law No. 7104, Art. 2 In sales made at auction premises, those who make such sales,

d) The General Directorate of PTT Operations and radio and television institutions,

e) Amended: 14/3/2007, Law No. 5602, Art. 10 Those who organise all kinds of games of chance and luck,

f) Repealed: 14/3/2007, Law No. 5602, Art. 11

g) In the cases falling under subparagraph (c) of paragraph 3 of Article 1, those who organise or stage them,

h) Those who lease the goods and rights specified in Article 70 of the Income Tax Law,

ı) Those who make a request under optional taxpayer status.

2. Amended: 3/6/1986, Law No. 3297, Art. 2 Those who show value added tax on invoices or similar documents they issue, although there is no taxable transaction or they have no right to show value added tax on invoices or similar documents, shall be liable to pay this tax. This also applies to taxpayers who show an amount higher than the tax amount they owe under the law. Amended third sentence: 29/3/2018, Law No. 7104, Art. 2 Tax calculated in excess or without basis for such reasons and paid to the Treasury shall be refunded to the taxpayer who performed the transaction in accordance with the procedures and principles to be determined by the Ministry of Finance. Added sentence: 29/3/2018, Law No. 7104, Art. 2 However, for such refund to be made, the returns relating to the transaction must be corrected and the tax calculated in excess or without basis must be returned by the seller to the purchaser.

Person liable for tax:

Amended: 24/6/1994, Law No. 4008, Art. 30

1. Where the taxpayer has no residence, place of business, legal seat or business centre in Türkiye, and in other cases deemed necessary, the Ministry of Finance may, for the purpose of securing the tax receivable, hold those who are parties to taxable transactions liable for payment of the tax. Added sentences: 28/11/2017, Law No. 7061, Art. 41 However, value added tax on services provided electronically by those who have no residence, place of business, legal seat or business centre in Türkiye to natural persons who are not value added taxpayers shall be declared and paid by those providing such services. The Ministry of Finance is authorised to determine the scope of services provided electronically and the procedures and principles relating to implementation.

2. Where it is established during a physical or book inventory that goods are held without documents or that services have been purchased without documents, the value added tax lost due to these purchases shall be claimed from the taxpayer holding the undocumented goods or purchasing the undocumented services.

Taxpayers found to hold goods or to have purchased services without documents shall be given a period of 10 days from the date of the finding to submit the purchase documents for these goods and services. If the purchase documents cannot be submitted within this period, the value added tax calculated on the comparable value (emsal bedeli), as of the date of the finding, of the goods and services whose documents cannot be submitted shall be assessed ex officio in the name of the taxpayer who cannot document its purchases. A tax loss penalty shall be applied to this assessment.

However, where a value added tax assessment is made, on the basis of a tax inspection report, against those who sold the goods and services purchased without documents in respect of these sales, the tax lost and the related penalty shall not additionally be claimed from the purchasers.

3. Added: 16/6/2009, Law No. 5904, Art. 9 Licensed warehouse operators shall be liable for payment of the value added tax on the delivery of product certificates issued under Agricultural Products Licensed Warehousing Law No. 5300 to those who will withdraw from the warehouse the product represented by the certificate.

Chapter Three

Chargeable Event

Occurrence of the chargeable event:

The chargeable event:

a) In cases of delivery of goods and performance of services, the delivery of the goods or the performance of the service,

b) In cases where an invoice or similar documents are issued before the delivery of the goods or the performance of the service, the issuance of the invoice or similar documents, limited to the amount shown in such documents,

c) In cases where it is customary, or has been agreed, for goods to be delivered or services to be performed in parts, the delivery of each part or the performance of each part of the service,

d) In sales made through commission agents or on consignment, the delivery of the goods to the purchaser,

e) Where goods are dispatched to the purchaser or those acting on the purchaser's behalf, the commencement of the transportation of the goods or their handing over to the carrier or driver,

f) Repealed: 22/7/1998, Law No. 4369, Art. 82

g) In the distribution or use of water, electricity, gas, heating, cooling and similar energy, the accrual of their charges,

h) Repealed: 5/11/1986, Law No. 3316, Art. 2

ı) In importation, the commencement of the obligation to pay customs duty under the Customs Law and, in transactions not subject to customs duty, the registration of the customs declaration,

j) In transportation between foreign countries and Türkiye and in transit transportation carried out by those whose residence, place of business, legal seat and business centre are not in Türkiye, Amended phrase: 27/1/2000, Law No. 4503, Art. 3 entry into or exit from the customs territory

k) Added: 16/6/2009, Law No. 5904, Art. 10 The withdrawal from the warehouse of the products represented by product certificates issued under Agricultural Products Licensed Warehousing Law No. 5300,

occurs at the moment of the foregoing.

Part Two

Exemptions

Chapter One

Export Exemption

Export of goods and services:

1. The following deliveries and services shall be exempt from tax:

a) Amended: 4/6/2008, Law No. 5766, Art. 12 Export deliveries and services relating to such deliveries, services performed for customers abroad, contract manufacturing (fason) services performed for customers in free zones and, subject to reciprocity, roaming services provided in Türkiye to customers abroad within the framework of international roaming agreements,

b) Value Added Tax shall be collected at the time of delivery of goods purchased by passengers not resident in Türkiye and taken by them out of Türkiye. However, the Value Added Tax collected shall be refunded upon presentation of the invoice or document at the time the goods leave customs.

Added: 28/12/2001, Law No. 4731, Art. 5 Value added tax paid by those who have no residence, place of business, legal seat or business centre in Türkiye on goods and services they purchase in connection with their transportation activities, and on goods and services they purchase on account of their participation in fairs, festivals and exhibitions, shall be refunded subject to reciprocity.

Added paragraph: 16/6/2009, Law No. 5904, Art. 11 Value added tax paid on goods and services purchased by foreign producers in respect of cinematographic works approved by the Ministry of Culture and Tourism within the scope of Law No. 5224 on the Evaluation, Classification and Support of Cinema Films dated 14/7/2004, above the threshold set out in Article 232 of Tax Procedure Law No. 213 and applicable in the relevant year, shall be refunded to the producers.

Added: 28/12/2001, Law No. 4731, Art. 5 The Ministry of Finance is authorised to determine the goods and services eligible for the refund and the procedures and principles relating to implementation.

c) Added: 3/6/1986, Law No. 3297, Art. 3 Value added tax on goods delivered to exporters by manufacturers on condition of export shall not be paid by the exporters. This tax, which is not collected by the taxpayers but is to be declared in the return for the relevant period, shall be assessed and accrued by the tax office and deferred.

If such goods are exported within 3 months from the beginning of the month following the date of delivery to the exporter, the deferred tax shall be cancelled.

If the export is not carried out in accordance with the above conditions, the deferred tax shall be collected together with the late payment surcharge determined under Article 51 of Law No. 6183 on the Procedure for the Collection of Public Receivables, from the date on which it was accrued. However, if goods delivered on condition of export are not exported due to force majeure specified in the Tax Procedure Law, the deferred tax shall be collected together with the deferral interest applicable for the relevant periods under Article 48 of Law No. 6183 on the Procedure for the Collection of Public Receivables, from the date on which it was deferred.

The provision of Article 32 of this Law shall not apply to exporters with respect to these deferred or cancelled taxes.

The Value Added Tax to be refunded to manufacturers delivering goods to exporters may not exceed the amount remaining after deducting, from the tax calculated on the manufacturer's sale price of the exported goods, the tax relating to any change in the tax base to the detriment of the manufacturer.

The Value Added Tax to be refunded to manufacturers delivering goods to exporters shall be refunded after the export transactions are completed. The amount of tax to be refunded or deferred shall be calculated by comparing the information contained in the taxpayer's return for the relevant period.

Added: 9/4/2003, Law No. 4842, Art. 21 If the export cannot be carried out within three months due to force majeure or unforeseen circumstances, exporters who apply within fifteen days at the latest from the date of expiry of the three-month period may be granted an additional period of up to three months by the Ministry of Finance or, where the Ministry deems appropriate, by tax offices.

2. Amended: 3/6/1986, Law No. 3297, Art. 3 The Ministry of Finance and Customs is authorised to limit the quantity of goods to be delivered without collection of Value Added Tax for each exporter and each person delivering goods to an exporter, on the basis of the previous year's business volume, current year transactions and in cases deemed necessary for securing the tax receivable, and to determine the procedures and principles relating to the implementation of these exemptions and the minimum amounts to which the exemption shall apply.

Export deliveries and services performed for customers abroad:

1. Amended: 18/2/2009, Law No. 5838, Art. 11 For a delivery to be deemed an export delivery, the following conditions must be fulfilled:

a) The delivery must be made to a customer abroad, or to a purchaser in a free zone, or, for sale in duty-free shops operating under paragraph (1) of Article 95 of Customs Law No. 4458 dated 27/10/1999, to these shops or their warehouses, or to an authorised customs warehouse operator, or the goods must be entrusted to an authorised customs warehouse operator.

b) The goods subject to delivery must leave the customs territory of the Republic of Türkiye and arrive in a foreign country or a free zone, or be placed, for sale in duty-free shops, in these shops or their warehouses or in an authorised customs warehouse. The processing or utilisation in any manner of the goods subject to delivery, before being exported, by firms in Türkiye acting on behalf of the purchaser abroad or by the purchaser itself shall not change the situation.

The Ministry of Finance is authorised, upon obtaining the opinion of the Undersecretariat of Customs, to determine authorised customs warehouses and the documents required to be issued therein, and to impose limitations regarding the type and quantity of goods to be placed therein and the periods for which they may remain in the warehouse.

In the event of non-compliance with the principles determined under this paragraph regarding the operation of authorised customs warehouses, the warehouse operator shall be jointly and severally liable, together with the person who received the value added tax refund, for payment of the tax lost, the related penalty to be imposed and the late payment interest to be calculated.

2. The term customer abroad refers to purchasers whose residence, place of business, legal seat and business centre are abroad, and to branches of a firm located in Türkiye that operate independently abroad in their own name. For a service to be deemed a service performed for customers abroad, the following conditions must be fulfilled.

a) The services must be performed for a customer abroad.

b) The service must be benefited from abroad.

3) Added: 4/6/2008, Law No. 5766, Art. 12 For contract manufacturing (fason) services to be deemed to have been performed for customers in free zones, the following conditions must be fulfilled.

a) The contract manufacturing service must be performed for customers operating in free zones.

b) The contract manufacturing service must be benefited from in free zones.

Amended: 26/3/1985, Law No. 3174, Art. 1

The following deliveries and services shall be exempt from the tax.

a) Amended: 25/5/1995, Law No. 4108, Art. 33 Deliveries of sea, air and railway transport vehicles and of floating installations and vehicles made for this purpose to taxpayers whose activities consist wholly or partly of the leasing or the operation in various forms of sea, air and railway transport vehicles and floating installations and vehicles; deliveries and services made in connection with the manufacture and construction of such vehicles, and services in the form of the modification, repair and maintenance thereof; and deliveries and services to be made, in connection with the manufacture and construction of such vehicles, to those whose activities consist of the manufacture and construction of sea transport vehicles and floating installations and vehicles,

b) Repealed: 25/12/2003, Law No. 5035, Art. 49; Re-enacted: 16/7/2004, Law No. 5228, Art. 14 Services provided at ports and airports for sea and air transport vehicles, Added parenthetical provision: 28/7/2024, Law No. 7524, Art. 17 (In the application of this subparagraph, vehicles used in activities such as excursion, recreation, sports and amateur fishing, and private boats and yachts, shall not be deemed sea transport vehicles.)

c) Amended: 28/3/2007, Law No. 5615, Art. 12 Deliveries and services made to those carrying out activities of exploration, operation, enrichment and refining of gold, silver and platinum and petroleum exploration activities under the provisions of the Turkish Petroleum Law, in relation to those activities, and deliveries and services made to those engaged in pipeline transportation under the provisions of the same Law in relation to the construction and modernisation of those lines,

d) Added: 22/7/1998, Law No. 4369, Art. 59 Deliveries of machinery and equipment covered by the certificate, and sales and leases of software and intangible rights covered by the certificate, to taxpayers holding an Investment Incentive Certificate (However, where the investment is not realised in the manner envisaged in the investment incentive certificate, the tax not collected on time shall be collected from the purchaser together with late payment interest, with the application of a tax loss penalty. Limitation for taxes not collected on time and for tax penalties shall begin from the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurred).

e) Added: 16/7/2004, Law No. 5228, Art. 14; Amended: 1/7/2006, Law No. 5538, Art. 8 Deliveries of goods and construction contracting works made, in relation to these works, to taxpayers who actually carry out themselves or have others carry out the construction, renewal and expansion of railway lines providing connection to ports, of ports and of airports, and to administrations with general budgets,

f) Added: 16/7/2004, Law No. 5228, Art. 14 Deliveries and services made to the Ministry of National Defence, the Ministry of Justice, the Ministry of Interior, (…) the Presidency of Defence Industries, the Presidency of the National Intelligence Organisation (…) and the General Directorate of Customs Enforcement for national defence and internal security needs, relating to aircraft, helicopters, ships, submarines, tanks, armoured vehicles, armoured personnel carriers, rockets, missiles and similar vehicles, weapons, ammunition, weapon materials, equipment and systems, and to their research and development, software, production, assembly, spare parts, maintenance and repair and modernisation; deliveries and services made to the Ministry of National Defence or the Presidency of Defence Industries within the scope of the relevant projects relating to defence industry projects carried out by these institutions; and deliveries and services to be made within this scope to those performing such deliveries and services, the quantity and qualities of which are approved by the institutions listed above.

g) Added: 16/6/2009, Law No. 5904, Art. 12 Delivery of goods included in list (II) annexed to the Special Consumption Tax Law No. 4760 dated 6/6/2002 to the central organisation of the Presidency of the Republic,

ğ) Added: 16/6/2009, Law No. 5904, Art. 12 The first delivery of product certificates issued under the Agricultural Products Licensed Warehousing Law No. 5300 through specialised product exchanges and commodity exchanges that have obtained permission from the Ministry of Industry and Trade to trade in product certificates.

h) Added: 27/3/2015, Law No. 6639, Art. 13 Deliveries and services made to the Turkish Red Crescent Society within the scope of its duties aimed at carrying out, in accordance with the purposes set out in its statute, disaster management and relief, shelter, nutrition, social assistance, public awareness raising, national and international humanitarian law and the activities of the International Red Cross and Red Crescent Movement, its duties in times of war or states of emergency, and blood, health, migration and refugee services (including asylum seeker services); and deliveries and services of the Turkish Red Crescent Society within the scope of its national and international cooperation, its international affiliations and memberships, and the humanitarian aid activities it carries out with institutions and organisations affiliated with the United Nations and with internationally accredited aid organisations,

ı) Added: 29/1/2016, Law No. 6663, Art. 13 Deliveries of fertilisers registered by the Ministry of Food, Agriculture and Livestock and of the raw materials contained in these products to fertiliser producers, and deliveries of oilseed cake (excluding residues of starch manufacture and similar residues classified under tariff position number 2303.10 of the Turkish Customs Tariff Schedule and brewing or distilling dregs and waste classified under customs tariff statistical position number 2303.30.00.00.00), full-fat soya (fullfat), bran, middlings (razmol), fish meal, meat meal, bone meal, blood meal, tapioca (manioc), sorghum and all kinds of compound feeds (excluding cat and dog food), straw, fodder turnips, fodder beet, root fodder, hay, alfalfa, vetch, sainfoin, green fodder and silage maize, clover, fodder cabbage, fodder peas and similar animal feeds (including green and dry roughage and those processed in pellet form or, according to seasonal needs, with or without the use of a binder),

i) Added: 23/2/2017, Law No. 6824, Art. 7 Provided that it applies to the first delivery of buildings constructed as dwellings or workplaces and that the price is brought into Türkiye in foreign currency, deliveries of dwellings or workplaces made to Turkish citizens living abroad for more than six months with a work or residence permit, excluding those specified in subparagraph 2 of paragraph 1 of Article 3 of the Income Tax Law, to natural persons of foreign nationality not settled in Türkiye, and to corporations whose legal seat and business centre are not in Türkiye and which do not derive income in Türkiye through a workplace or a permanent representative (However, where it is determined that the exemption was applied although the conditions set out in this subparagraph were not met, the purchaser shall be jointly and severally liable together with the taxpayer for the tax not collected on time, the tax loss penalty and the late payment interest. Where the dwelling or workplace received within the scope of the exemption is disposed of within three years, the tax not collected on time must be paid by the person disposing of it, together with the deferral interest calculated under Article 48 of Law No. 6183, before the land registry transaction.),

j) Added: 21/3/2018, Law No. 7103, Art. 29 Deliveries of goods and performance of services made to organised industrial zones and small industrial estates, or to economic enterprises established by them, relating to the water, sewerage, treatment, natural gas, electricity, communication, renewable and other energy facilities and road construction of such zones and estates and to the construction of workplaces in small industrial estates,

k) Added: 29/3/2018, Law No. 7104, Art. 4 Deliveries and services made to those who will make donations, in connection with the construction of schools, health facilities and student dormitories with a capacity of not less than one hundred beds (fifty beds in priority regions for development), as well as nurseries, orphanages, nursing homes, care and rehabilitation centres, places of worship subject to the permission and supervision of the chief civil administrative officers, facilities providing non-formal religious education subject to the supervision of the Presidency of Religious Affairs, and youth centres and youth and scouting camps belonging to the Ministry of Youth and Sports, to be donated to public administrations with general and special budgets, special provincial administrations, municipalities and villages,

l) Added: 29/3/2018, Law No. 7104, Art. 4 Preventive medicine, diagnosis, treatment and rehabilitation services provided exclusively within health institutions and organisations by natural or legal persons authorised by the Ministry of Health to natural persons of foreign nationality not settled in Türkiye (Other deliveries and services provided together with these services to natural persons of foreign nationality not settled in Türkiye are not included within the scope of the exemption.),

m) Added: 29/3/2018, Law No. 7104, Art. 4 Deliveries of new machinery and equipment, to be used exclusively in these activities, made to those engaged in R&D, innovation and design activities in technology development zones and specialised technology development zones within the scope of the Technology Development Zones Law No. 4691 dated 26/6/2001, in R&D and design centres within the scope of the Law No. 5746 dated 28/2/2008 on Supporting Research, Development and Design Activities, and in research laboratories within the scope of the Law No. 6550 dated 3/7/2014 on Supporting Research Infrastructures (Where machinery and equipment acquired within the scope of the exemption are used other than in R&D, innovation and design activities or are disposed of within three years from the beginning of the calendar year following the date of delivery, the tax not collected on time shall be collected from the purchaser together with late payment interest, with the application of a tax loss penalty. Limitation for taxes not collected on time and for tax penalties shall begin from the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurred.),

n) Added: 17/1/2019, Law No. 7161, Art. 17 Amended: 21/2/2019, Law No. 7166, Art. 7 Delivery of printed books and periodicals, excluding those sold in sealed bags under the provisions of the Law No. 1117 dated 21/6/1927 on the Protection of Minors from Harmful Publications (In the application of the provision of this subparagraph, the threshold determined in the second paragraph of this Article shall not apply.),

o) Added: 20/7/2025, Law No. 7555, Art. 6 Delivery of the motor vehicles in the line “- Motor vehicles used for the transport of goods, with a maximum weight not exceeding 3.5 tonnes and with a passenger carrying capacity (Passenger carrying capacity shall be calculated by multiplying the total number of passengers, including the driver, by 70 kilograms. In this calculation, fixed fittings provided for the mounting of seats shall also be taken into account as seats even if there are no seats) below 50% of the load capacity (the total load weight, including the driver and passengers, that a vehicle can safely carry) (excluding those in which all wheels are or can be powered by the engine, passenger cars, station wagons, racing cars and off-road vehicles)” under G.T.İ.P. (customs tariff statistical position) number 87.03 of list (II) annexed to Law No. 4760, and of the vehicles under G.T.İ.P. numbers 87.04 and 87.11, to the Ministry of National Defence, the Ministry of Interior, the Presidency of Defence Industries and the Presidency of the National Intelligence Organisation, to be used exclusively for national defence and internal security needs,

Added paragraph: 16/7/2004, Law No. 5228, Art. 14 The President of the Republic is authorised to determine the threshold set out in Article 232 of the Tax Procedure Law No. 213 and applicable in the relevant year as the minimum amount in the application of the exemption, and to increase the amount so determined up to two times or to reduce it down to zero. The Ministry of Finance is authorised to define the deliveries and services that will fall within the scope of the exemption and to determine the procedures and principles relating to the exemption.

CHAPTER THREE

Transport Exemption

Transit transport:

1. In transit transport and in transport operations carried out between Türkiye and foreign countries, the transport operations to be determined by the President of the Republic shall be exempt from the tax.

2. This exemption shall be granted to taxpayers whose residence, legal seat and business centre are not in Türkiye, on condition of reciprocity with respect to the countries concerned.

3. Added: 27/4/2006, Law No. 5493, Art. 2 Within the framework of the provisions of the Law No. 4054 on the Protection of Competition and the Petroleum Market Law No. 5015, the delivery of diesel fuel made, solely upon their exit abroad, at border gates determined by the President of the Republic, into the tanks of trucks, tractor units and semi-trailers equipped with refrigeration units carrying goods to be taken abroad under the export regime of the Customs Law No. 4458 (provided that it does not exceed the standard fuel tank capacities of the vehicles and refrigeration units) shall be exempt from the tax.

The Ministry of Finance is authorised to determine the procedures and principles relating to the application of this exemption.

1. The following deliveries and services shall be exempt from the tax:

a) Deliveries and services made, subject to reciprocity, to the diplomatic missions and consulates of foreign states in Türkiye and to their members having diplomatic privileges,

b) Deliveries and services made to international organisations granted tax exemption under international agreements and to their members,

2. The Ministry of Finance and Customs is authorised to determine the procedures and principles relating to the application of these exemptions and the minimum amounts to which the exemption shall apply.

1. The following deliveries and services shall be exempt from the tax:

a) Importation of goods and services whose deliveries are exempted from the tax under this Law,

b) Amended: 27/1/2000, Law No. 4503, Art. 1 Importation of goods that are relieved or exempt from customs duty within the scope of the provisions of paragraph 1 of Article 167 of the Customs Law No. 4458 excluding subparagraph (3), item (a) of subparagraph (5), subparagraph (7) and item (a) of subparagraph (12) and of the provisions concerning the temporary importation and outward processing regimes and returned goods, (In order for goods exported by benefiting from the export exemption regulated in Article 11 of this Law but returned in the manner specified in Articles 168, 169 and 170 of the Customs Law to benefit from the import exemption, it is required that the amount benefited from the export exemption in respect of such goods be paid to the customs administrations or that security be provided in that amount.)

c) Amended: 25/12/2003, Law No. 5035, Art. 7 Goods to which the transit and customs warehousing regimes and the provisions on temporary storage and free zones under the Customs Law are applied,

2) Amended: 27/1/2000, Law No. 4503, Art. 1 Where goods returned under the Customs Law have been subjected to processing abroad or an addition has been made to their essential part, the difference in value acquired by the goods shall not be included in the exemption.

1. Exemptions for Cultural and Educational Purposes:

Of general and annexed budget administrations, special provincial administrations, municipalities, villages, unions formed by them, universities, revolving fund institutions, public institutions and organisations established by law and by Presidential decree, professional organisations having the nature of public institutions, political parties and trade unions, pension and aid funds established by law or having legal personality, associations serving the public interest, agricultural cooperatives and foundations granted tax exemption by the President of the Republic;

a) Deliveries and services made for the purpose of disseminating, improving and promoting science, technology, fine arts and agriculture,

b) Deliveries and services relating to cultural and educational activities performed by operating or managing theatres, concert halls, libraries, exhibitions, reading and conference halls and sports facilities,

2. Exemptions for Social Purposes:

a) Deliveries and services in conformity with their founding purposes performed by the institutions and organisations listed above through operating or managing establishments such as hospitals, convalescent homes, clinics, dispensaries, preventoria, sanatoria, blood banks and banks dedicated to organ transplantation, monuments, botanical and zoological gardens, parks, and veterinary, bacteriology, serology and distofajin laboratories, student or upbringing dormitories, care homes and rest homes for the elderly and persons with disabilities, free soup kitchens for the poor, almshouses and orphanages, as well as deliveries and services for diagnosis and treatment made to one another by those of them providing health services,

b) Amended: 16/7/2004, Law No. 5228, Art. 15 Free education and training services provided without exceeding 10% of their capacity in the relevant period in free education and training services provided by private schools subject to the provisions of Law No. 5580 dated 8/2/2007, 10% of their capacity in the relevant period in free dormitory services provided by student dormitories established under the provisions of the Law No. 5661 dated 24/3/1950 Supplementary to the Law on Higher Education Student Dormitories and Soup Kitchens and the Law No. 3797 dated 30/4/1992 on the Organisation and Duties of the Ministry of National Education, and 50% at universities and higher schools; deliveries of goods and performance of services made free of charge as required by laws; all kinds of deliveries of goods and performance of services made free of charge to the institutions and organisations listed in the first paragraph; and deliveries of food, cleaning, clothing and heating materials donated, within the framework of the procedures and principles determined by the Ministry of Finance, to the Darülaceze (public almshouse) and to associations and foundations engaged in food banking activities for the purpose of aiding the poor,

c) Added: 23/11/2000, Law No. 4605, Art. 6 Deliveries and services made to diplomatic missions and consulates of foreign states in Türkiye and to foreign charitable and aid organisations in connection with the deliveries and services they will make free of charge to the institutions and organisations listed in paragraph 1 of this Article.

The Ministry of Finance is authorised to determine the goods and services to fall within the scope of the exemption and their minimum amounts, as well as the procedures and principles for the application of this subparagraph.

d) Added: 14/7/2004, Law No. 5226, Art. 19 Architectural services provided to those benefiting from such project work, limited exclusively to survey (rölöve), restoration and restitution projects of registered immovable cultural property within the scope of the Law No. 2863 on the Protection of Cultural and Natural Property, and deliveries to be made within the scope of the implementation of the projects.

The goods and services to fall within the scope of the exemption, their minimum standards and the procedures and principles for the application of this subparagraph shall be determined by the Ministry of Finance.

e) Added: 16/7/2004, Law No. 5228, Art. 15 Licence, permit, approval and similar services of professional organisations having the nature of public institutions, rendered as required by the duties assigned to them by law and in conformity with their founding purposes, and deliveries by these organisations of printed papers to be used in connection with these services (excluding deliveries of motor vehicle registration plates),

3. Exemptions for Military Purposes:

a) Amended: 11/2/2014, Law No. 6519, Art. 45 Deliveries and services made in conformity with their founding purposes by military factories, shipyards and workshops, officers' clubs and their affiliated branches, military casinos, barracks casinos, shift dormitories and their annexes, special, local and winter training centres, military canteens and military museums, as well as leasing transactions of goods and rights specified in Article 70 of the Income Tax Law to be carried out by these institutions and organisations,

b) Repealed: 3/6/1986, Law No. 3297, Art. 18

c) Repealed: 6/12/1984, Law No. 3099, Provisional Art.

4. Other Exemptions:

a) Amended: 9/4/2003, Law No. 4842, Art. 23 Deliveries and services made by tradesmen exempt from tax under the Income Tax Law and by taxpayers whose earnings are determined by the simplified method, and deliveries and services giving rise to earnings taxed within the scope of Article 20/B bis and Provisional Article 94 of the same Law,

b) Amended: 3/6/1986, Law No. 3297, Art. 6 Deliveries and services made by farmers not subject to tax under the actual method under the Income Tax Law and by self-employed professionals exempt from tax under Article 66 of the same Law,

c) Amended: 20/6/2001, Law No. 4684, Art. 19 Transactions specified in Article 81 of the Income Tax Law, transactions of conversion of ordinary partnerships into capital companies under the conditions set out in subparagraph (2) of the first paragraph of the same Article, and transfer and division transactions carried out under the Corporate Tax Law (With respect to transactions exempted from tax within this scope, the provision of subparagraph (a) of Article 30 of the Value Added Tax Law shall not apply. Taxes borne and not deductible by taxpayers that cease their activities, are divided or are dissolved at the end of the transaction shall be deducted by taxpayers that commence activity or that take over the assets of the transferred or divided entities after the transfer and division, in a manner that does not lead to double deduction, according to the result of a tax inspection to be carried out without being bound by the limitation periods set out in the Tax Procedure Law.),

ç) Added: 28/11/2017, Law No. 7061, Art. 42 Roaming services received from abroad within the framework of international roaming agreements and the passing on of these services to customers in Türkiye,

d) Leasing transactions of immovable property not included in economic enterprises, transactions of leasing by school-parent associations of areas designated as canteens in schools affiliated with the Ministry of National Education, and leasing transactions of goods and rights specified in Article 70 of the Income Tax Law to be carried out by institutions and organisations such as hospitals, clinics, dispensaries and sanatoria affiliated with the Ministry of Health,

e) Amended: 9/4/2003, Law No. 4842, Art. 23 Transactions falling within the scope of the banking and insurance transactions tax, transactions of insurance intermediaries relating to insurance transactions made for insurance companies, and credit guarantee transactions of the institutions specified in subparagraphs (1) and (p) of the first paragraph of Article 4 of Law No. 5520,

f) Amended: 14/3/2007, Law No. 5602, Art. 10 Deliveries and services made by the Mint and Stamp Printing House,

g) Amended: 16/7/2004, Law No. 5228, Art. 15 Deliveries of gold bullion and silver bullion; importation of precious stones (diamond, brilliant, ruby, emerald, topaz, sapphire, zebercet (peridot), pearl) for trading on exchanges established in Türkiye under the Capital Markets Law No. 6362 dated 6/12/2012, their delivery to the exchange and their change of hands among exchange members; and deliveries of foreign currency, money, revenue stamps, valuable papers, shares, bonds, (including financing services provided by purchasing bonds, limited to the interest income obtained) lease certificates issued by asset leasing companies, capital market instruments traded on exchanges established in Türkiye, and metal, plastic, rubber, caoutchouc, paper and glass scrap and waste and garment clippings,

ğ) Added: 2/4/2026, Law No. 7577, Art. 3 Transfer of immovable property to the State and public legal persons carrying out the expropriation within the scope of the Expropriation Law No. 2942 dated 4/11/1983,

h) Deliveries of water for agricultural purposes and non-commercial retail deliveries of drinking water made by village legal entities to persons residing in the village, and land improvement services performed by public institutions, agricultural cooperatives and farmers' unions,

ı) Added: 6/12/1984, Law No. 3099, Art. 1; Amended: 16/7/2004, Law No. 5228, Art. 15 Services rendered in free zones and freight transportation for export purposes made to free zones or from these zones,

i) Added: 19/8/2016, Law No. 6741, Art. 9 Transfer of assets and rights to the Türkiye Wealth Fund and sub-funds, and deliveries and services made through the management of these assets and rights by the Türkiye Wealth Fund Management Joint-Stock Company,

With respect to transactions exempted within the scope of this subparagraph, the provision of subparagraph (a) of the first paragraph of Article 30 shall not apply.

j) Added: 3/6/1986, Law No. 3297, Art. 6 Services of transporting foreign crude oil, gas and their products by pipeline.

k) Added: 22/7/1998, Law No. 4369, Art. 60 Deliveries of land and workplaces by economic enterprises formed for the purpose of establishing organised industrial zones and small industrial estates (…).

l) Added: 9/4/2003, Law No. 4842, Art. 23 Deliveries of goods and rights constituting the collateral of receivables (including sale at auction premises) for the purpose of collecting the receivables taken over from banks, special finance institutions and other financial institutions by asset management companies established under the provisions of Law No. 4743 dated 30.1.2002, and deliveries of goods and rights constituting the collateral of debts (including sale at auction premises) due to non-payment of debts restructured within the scope of the provisions of financial restructuring framework agreements under the same Law,

m) Added: 9/4/2003, Law No. 4842, Art. 23; Amended: 16/7/2004, Law No. 5228, Art. 15 Pursuant to the Banking Law; deliveries of goods and rights to the Savings Deposit Insurance Fund and their delivery by the Savings Deposit Insurance Fund (including sale at auction premises), deliveries of goods and rights constituting the collateral of receivables taken over by this Fund (including sale at auction premises) for the purpose of collecting such receivables, and deliveries (including sales made at auction premises) of the assets of companies whose shareholder rights, other than dividends, and whose management and supervision have been taken over, for the purpose of collecting the Fund's receivables,

This exemption shall be applied in proportion to the amount of the transaction price that passes to the Fund.

n) Added: 25/12/2003, Law No. 5035, Art. 8 News services provided to the Directorate General of Press, Publication and Information.

o) Added: 16/7/2004, Law No. 5228, Art. 15 Leasing of workplaces making tax-free sales (…) in customs warehouses, temporary storage places and customs areas where customs services are provided, and of independent units such as depots and storehouses belonging to these workplaces,

ö) Added: 29/3/2018, Law No. 7104, Art. 5 Storage, warehousing and terminal services provided in customs warehouses, temporary storage places and customs areas where customs services are provided, for goods subject to import and export transactions and goods processed under the transit regime,

p) Added: 16/7/2004, Law No. 5228, Art. 15; Amended: 24/7/2008, Law No. 5793, Art. 13 Deliveries and leasing of immovable property, establishment of easement rights, and granting of use permits and preliminary permits by the Treasury; deliveries of plots and land by the Presidency of Urban Transformation and the Presidency of the Housing Development Administration; and transfers and deliveries realised through the sale of immovable property owned by municipalities, special provincial administrations and investment monitoring and coordination presidencies and of immovable property owned by annexed foundations (mazbut vakıflar) managed and represented by the Directorate General of Foundations,

r) Added: 30/12/2004, Law No. 5281, Art. 33; Amended: 28/3/2007, Law No. 5615, Art. 13 Transfers and deliveries realised through the sale of participation shares held among the assets of entities (…) for at least two full years; transfers and deliveries to banks, financial leasing and financing companies of immovable property and participation shares (including sales made at auction premises) by persons indebted to banks, financial leasing and financing companies and by their guarantors, against their debts; and transfers and deliveries of such immovable property and participation shares by financial leasing and financing companies.

Deliveries of (…) participation shares held among their assets for this purpose by entities trading in the assets covered by the exemption are outside the scope of the exemption.

Value added tax borne in the acquisition of assets delivered within the scope of the exemption and not offset by way of deduction up to the period in which the delivery is made shall be taken into account as an expense in determining the income or corporate tax base for the accounting period in which the delivery is made.

Added paragraph: 15/7/2016, Law No. 6728, Art. 43 In calculating the period of at least two full years of holding among assets that applies to the sale to third parties, by the originator and the lessee, of (…) participation shares transferred to asset leasing companies within the scope of subparagraph (u) of this paragraph and to financial leasing companies, participation banks and development and investment banks within the scope of subparagraph (y), the periods during which these (…) participation shares were held among the assets of asset leasing companies, financial leasing companies, participation banks and development and investment banks shall also be taken into account.

s) Added: 1/7/2005, Law No. 5378, Art. 32 All kinds of tools and equipment and special computer software produced specifically for the education, professions and daily lives of persons with disabilities.

ş) Added: 21/2/2007, Law No. 5582, Art. 35 Delivery of a dwelling pledged as collateral or mortgaged for the purpose of housing finance as defined in Article 38/A of the Capital Markets Law No. 2499 to housing finance institutions, the Presidency of the Housing Development Administration, mortgage finance institutions or third parties (including sales made at auction premises), and delivery of a dwelling so acquired by housing finance institutions, the Presidency of the Housing Development Administration or mortgage finance institutions (including sale made at auction premises).

t) Added: 16/6/2009, Law No. 5904, Art. 14 Deliveries of product certificates issued within the scope of the Agricultural Products Licensed Warehousing Law No. 5300 through product specialised exchanges and commodity exchanges authorised by the Ministry of Industry and Trade to trade in product certificates, excluding the transactions specified in sub-subparagraph (d) of subparagraph (3) of the first paragraph of Article 1 and in subparagraph (ğ) of the first paragraph of Article 13 (With respect to transactions exempted from tax within this scope, the provision of subparagraph (a) of the first paragraph of Article 30 shall not apply.).

u) Added: 13/2/2011, Law No. 6111, Art. 85; Amended: 15/7/2016, Law No. 6728, Art. 43 Transfer of all kinds of assets and rights by originators to asset leasing companies for the purpose of issuing lease certificates and on condition that they be taken back at the end of the contract term, and the leasing of these assets and rights by asset leasing companies and their transfer to the entity from which they were taken over.

Value added tax borne in the acquisition of assets and rights transferred to asset leasing companies within the scope of the exemption and not offset by way of deduction up to the period in which the transfer is made shall be taken into account as an expense in determining the income or corporate tax base for the accounting period in which the transfer is made.

v) Added: 13/6/2012, Law No. 6327, Art. 12 Services provided by the Insurance Arbitration Commission established pursuant to the Insurance Law No. 5684 dated 3/6/2007, exclusively in relation to the resolution of disputes.

y) Added: 12/7/2013, Law No. 6495, Art. 29; Amended: 15/7/2016, Law No. 6728, Art. 43 Within the scope of the Law No. 6361 dated 21/11/2012 on Financial Leasing, Factoring and Financing Companies; the sale to the lessor of movable and immovable property subject to the lease, its lease to the sellers and its transfer, applicable to all kinds of movable and immovable property purchased directly from the lessee and leased back by financial leasing companies, participation banks and development and investment banks, on condition that ownership of the leased asset is to be transferred to the lessee at the end of the contract term.

Value added tax borne in the acquisition of all kinds of movable and immovable property transferred to financial leasing companies, participation banks and development and investment banks within the scope of the exemption and not offset by way of deduction up to the period in which the transfer is made shall be taken into account as an expense in determining the income or corporate tax base for the accounting period in which the transfer is made.

z) Added: 6/2/2014, Law No. 6518, Art. 32 Leasing, transfer or sale of intangible rights relating to an invention with a patent or utility model certificate resulting from research and development, innovation and software activities within the scope of Article 5/B of the Corporate Tax Law No. 5520 dated 13/6/2006 (With respect to transactions exempted from tax within this scope, the provision of subparagraph (a) of the first paragraph of Article 30 of this Law shall not apply.).

Chapter Seven

Waiver of Exemption and Limits of Exemptions

Waiver of exemption:

1. Amended: 16/7/2004, Law No. 5228, Art. 16 Persons carrying out transactions exempted from tax may, by applying in writing to the relevant tax office, request to be made subject to tax for the types of transactions they specify. Such request must cover all transactions specified in the petition and performed after the date of the petition. However, the tax liability shall not extend to transactions in progress.

2. Amended: 16/7/2004, Law No. 5228, Art. 16 Except for exemptions relating to deliveries and services performed by associations serving the public interest and foundations granted tax exemption by the President of the Republic through operating or managing in conformity with their founding purposes, the provision of paragraph (1) above shall not apply to the exemptions set out in paragraphs (1) and (2) of Article 17 and in subparagraph (a) of paragraph (3) and subparagraph (e) of paragraph (4).

3. Upon the request of those waiving the exemption, their tax liability shall be established by the tax office as from the date of the request. Those who become taxpayers in this manner may not withdraw from taxpayer status until three years have passed. If taxpayers do not request withdrawal from taxpayer status before the end of the three-year period, the taxpayer status shall be deemed extended for a further three years.

Limits of exemptions:

1. Provisions on tax exemptions and exceptions in other laws are invalid with respect to this tax. Exceptions and exemptions relating to value added tax may be regulated only by adding provisions to this Law or by making amendments to this Law.

2. Provisions of international agreements are reserved.

Part Three

Tax Base, Rate and Deduction

Chapter One

Tax Base

Tax base in delivery and service transactions:

1. The tax base in delivery and service transactions is the consideration constituting the counterpart of these transactions.

2. The term consideration means the total of money, goods and benefits, services and values provided in other forms and capable of being represented in money, received in whatever manner, or owed, in return for these transactions from the person taking delivery of the goods or receiving the service, or from those acting on their behalf.

3. Repealed: 22/7/1998, Law No. 4369, Art. 82

4. For works whose price is determined according to a specific tariff and in cases where the consideration is collected by ticket, the tariff and ticket price shall be determined inclusive of Value Added Tax, and the tax shall not be passed on separately to the customer.

Tax base in importation:

In importation, the tax base is the total of the elements shown below:

a) The value of the imported goods forming the basis for the assessment of customs duty; where customs duty is not levied on the basis of value or the goods are exempt from customs duty, their value including insurance and freight charges (CIF); and where this is not known, the value of the goods to be determined by the customs,

b) All kinds of taxes, duties, fees and levies paid during importation,

c) Other expenses and payments made up to the date of registration of the customs declaration that have not been taxed, and payments such as price differences and exchange rate differences calculated on the price of the goods.

ç) Added: 20/7/2025, Law No. 7555, Art. 8 The amount of special consumption tax forming the basis for calculating the security for goods imported against security pursuant to paragraph (4) of Article 16 of Law No. 4760.

Tax base in international freight and passenger transport:

The Ministry of Finance and Customs is authorised to determine the tax base for transport between foreign countries and Türkiye and for transit transport carried out by persons whose residence, legal seat and place of business are not in Türkiye, by taking into account domestic equivalents per person and per tonne-kilometre.

Special forms of tax base:

Special forms of tax base are as follows:

a) In the Spor-Toto game and in all kinds of lotteries, including the National Lottery, the price of participation in the game or the lottery,

b) In horse races and other pari-mutuel betting and games of chance, the price received in return for participation in such races and games and the price received in return for entry into the places where they are held,

c) In the organisation and staging of shows and concerts featuring professional artists and of sporting activities, matches, races and competitions in which professional athletes take part, the price received in return for entry into the places where they are held and the price of deliveries and services made in such places,

d) Amended: 16/6/2009, Law No. 5904, Art. 15 In sales made in customs warehouses and at auction venues, the final sale price; and, in the delivery of product certificates issued under the Agricultural Products Licensed Warehousing Law No. 5300 to those who will withdraw from the warehouse the product represented by the certificate, the value of the certificate formed on the exchange where it was last traded.

e) Added: 6/12/1984, Law No. 3099, Art. 2 In the delivery and importation of jewellery made of gold or containing gold and of gold coins, the tax base is the amount remaining after deduction of the price of bullion gold.

f) Added: 29/3/2018, Law No. 7104, Art. 6 In the delivery of second-hand motor land vehicles or immovables that are acquired by taxpayers engaged in the trade of second-hand motor land vehicles or immovables from persons who are not value added tax taxpayers (including purchases made from taxpayers within the scope of an exemption) and sold without any substantial change in their nature, the tax base is the amount remaining after deduction of the purchase price.

g) Added: 6/12/1984, Law No. 3099, Art. 2 The Ministry of Finance and Customs is authorised to determine special forms of tax base, taking into account the nature of the transaction.

Elements included in the tax base:

The following elements are included in the tax base:

a) Transport, loading and unloading expenses incurred by the seller up to the place designated by the recipient,

b) Packaging expenses, charges for insurance, commission and similar expenses, and elements such as taxes, duties, fees, shares and fund contributions,

c) Various revenues such as maturity differences, price differences, exchange rate differences, interest and premiums, and all kinds of benefits, services and values provided under the name of service charge or similar names.

Elements not included in the tax base:

The following elements are not included in the tax base:

a) Discounts, in amounts consistent with commercial custom, shown on invoices and similar documents in delivery and service transactions,

b) The value added tax calculated.

Transactions in foreign currency:

Where the price is calculated in foreign currency, the foreign currency shall be converted into Turkish currency at the current exchange rate prevailing at the time the chargeable event occurs. The principles for the conversion into Turkish currency of foreign currencies whose current exchange rate is not known shall be determined by the Ministry of Finance and Customs.

Comparable value and comparable fee:

1. In transactions with no price or an unknown price, and where the consideration consists of values other than money such as goods, benefits or services, the tax base shall be the comparable value or the comparable fee, depending on the nature of the transaction.

2. In cases where the price is clearly lower than the comparable value or the comparable fee and the taxpayer cannot explain this shortfall by a justified reason, the comparable value or the comparable fee shall likewise be taken as the tax base.

3. The comparable value and the comparable fee shall be determined in accordance with the provisions of the Tax Procedure Law.

4. For the purposes of the application of value added tax, in determining the comparable value it is mandatory to add to the price the share of general administrative expenses and general expenses attributable to the manufactured product.

5. Where there is a tariff established by the relevant professional organisations for self-employed professional activities, the price of the service may not be lower than the fee shown in that tariff.

6. Added: 29/3/2018, Law No. 7104, Art. 7 In determining the price for construction works carried out in return for land, the amount of the dwelling or workplace left by the contractor to the landowner, determined on the basis of the cost value in the second order set out in paragraph 2 of Article 267 of the Tax Procedure Law, shall be taken as the basis.

Chapter Two

Rate

Rate:

Amended: 3/12/1988, Law No. 3505, Art. 23

The value added tax rate is 10% for each taxable transaction. The President of the Republic is authorised to increase this rate up to four times, to reduce it down to 1%, and, within these rates, to determine different tax rates for various goods and services, for the retail stage of certain goods, and for deliveries of dwellings on the basis of the tax value and location of the land on which the construction is built or of the dwelling.

Chapter Three

Deduction

Tax deduction:

1. Unless otherwise provided in this Law, taxpayers may deduct the following taxes relating to their activities from the value added tax calculated on their taxable transactions:

a) The value added tax calculated and shown on invoices and similar documents issued in respect of deliveries and services made to them,

b) The value added tax paid in respect of imported goods and services,

c) Added: 3/6/1986, Law No. 3297, Art. 9 For taxpayers subject to tax under the lump-sum or compensatory method who switch to taxation under the actual method, the value added tax shown on invoices and similar documents relating to the goods on hand at the beginning of the accounting period according to the inventory taken,

ç) Added: 27/12/2023, Law No. 7491, Art. 30 The value added tax declared and paid in the capacity of a responsible party by those held responsible for withholding tax,

2. Amended: 25/12/2003, Law No. 5035, Art. 9 Where the total value added tax to be deducted in a tax period exceeds the total value added tax calculated on the taxpayer's taxable transactions, the difference shall be carried forward to subsequent periods and shall not be refunded. However, the tax which relates to deliveries and services for which the tax rate has been reduced by the President of the Republic pursuant to Article 28, which (…) could not be deducted, and whose amount exceeds the threshold to be determined by the President of the Republic, shall be paid by way of set-off against these taxpayers' tax and social insurance premium debts and their debts to general and annexed budget administrations and to municipalities, or against their debts relating to the prices of goods and services procured from revolving-fund institutions, from enterprises 51% or more of whose capital belongs to the public sector or which are within the scope of privatisation, and from organised industrial zones. Added sentence: 18/1/2017, Law No. 6770, Art. 16 However, the tax not refunded by way of set-off may be refunded in cash within the year by sectors, groups of goods and services and periods determined by the Ministry of Finance. Tax that could not be refunded by way of set-off within the year shall be refunded in cash or by way of set-off against the taxpayer's debts listed above, provided that it is requested within the following year. The President of the Republic is authorised to abolish the right to refund, by groups of goods and services and by sectors for which the tax rate has been reduced, in part or in whole or limited to the value added tax borne in respect of depreciable economic assets; and the Ministry of Finance is authorised to determine the procedures and principles for the implementation of this paragraph.

3. Added: 3/6/1986, Law No. 3297, Art. 9 The right of deduction may be exercised in the tax period in which the relevant documents are recorded in the statutory books, provided that the calendar year following the calendar year in which the chargeable event occurred is not exceeded. Added sentence: 9/3/2023, Law No. 7440, Art. 16 However, the value added tax paid, in respect of the importation of goods transported by pipelines or electric lines and in continuous flow, by the end of the period for filing the value added tax return for the tax period in which the importation took place, may be deducted in the period in which the importation took place.

4. Added: 29/3/2018, Law No. 7104, Art. 8 The value added tax calculated and declared in respect of receivables that have become worthless under Article 322 of the Tax Procedure Law may be deducted in the tax period in which the receivable is written off as a loss (provided, however, that in order for value added tax that was taken into account as an expense in determining the income or corporate tax base through the setting aside of a provision under Article 323 of the Tax Procedure Law to be deductible under this paragraph, it must be taken into account as income in determining the income or corporate tax base).

5. The Ministry of Finance and Customs is authorised to remedy any difficulties that may arise in the application of tax deduction, in a manner that does not give rise to double taxation or tax exemption and in conformity with the fundamental principles of this Law, and to regulate the procedures and principles relating to deduction.

Non-deductible value added tax:

The following taxes may not be deducted from the value added tax calculated on the taxpayer's taxable transactions:

a) The value added tax shown on purchase documents relating to, or included in the costs of, deliveries of goods and performances of services that are not subject to tax or are exempt from tax (excluding transactions exempted from value added tax pursuant to subparagraphs (b), (c) and (d) of paragraph (2) and subparagraphs (ı) and (ö) of paragraph (4) of Article 17 of this Law),

b) Amended: 3/6/1986, Law No. 3297, Art. 10 The value added tax shown on purchase documents for passenger cars belonging to enterprises, except those used for this purpose by persons whose activities consist wholly or partly of renting or otherwise operating passenger cars in various ways,

c) Amended: 16/7/2004, Law No. 5228, Art. 17 The value added tax relating to goods that are lost or destroyed, excluding those lost as a result of earthquake, flood disaster, or fire in places where the Ministry of Finance has declared force majeure due to fire, Added parenthetical provision: 29/3/2018, Law No. 7104, Art. 9 (However, the value added tax borne in respect of depreciable economic assets that are lost or destroyed or delivered within the scope of an exemption after completing their useful lives determined by the Ministry of Finance under Article 315 of the Tax Procedure Law, and the portion corresponding to the period of use of the value added tax borne in respect of depreciable economic assets that are lost or destroyed or delivered within the scope of an exemption before completing their useful lives, may be deducted.)

d) The value added tax paid in respect of expenses whose deduction is not accepted in determining earnings under the Income Tax and Corporate Tax laws. Added provision: 15/7/2016, Law No. 6728, Art. 44 (Excluding the value added tax paid on importation or in the capacity of a responsible party, and the value added tax declared and paid in the relevant tax period by taxpayers delivering goods or performing services in domestic transactions, relating to earnings distributed in a disguised manner through transfer pricing under Article 13 of Law No. 5520 and to differences arising against the enterprise under subparagraph (5) of paragraph 1 of Article 41 of the Income Tax Law)

e) Added: 29/3/2018, Law No. 7104, Art. 9 The value added tax not paid by the purchaser in respect of receivables that have become worthless under Article 322 of the Tax Procedure Law.

Deduction relating to depreciable economic assets:

Repealed: 22/7/1998, Law No. 4369, Art. 82

Deduction for exempted transactions:

The value added tax shown on invoices and similar documents relating to transactions exempted from tax pursuant to Articles 11, 13, 14 and 15 of this Law and subparagraph (s) of paragraph (4) of Article 17 shall be deducted from the value added tax to be calculated on the taxpayer's taxable transactions. Where there are no taxable transactions or the tax calculated is less than the tax to be deducted, the value added tax that could not be deducted shall be refunded to those carrying out such transactions in accordance with the principles to be determined by the Ministry of Finance and Customs, provided that it is requested by the end of the second calendar year following the period in which the transaction took place.

Added paragraph: 25/12/2003, Law No. 5035, Art. 10; Repealed: 16/7/2004, Law No. 5228, Art. 60

Added paragraph: 25/12/2003, Law No. 5035, Art. 10 The Ministry of Finance is authorised to limit value added tax refunds to set-off against the right holders' tax and social insurance premium debts and their debts to general and annexed budget departments and to municipalities, or against their debts relating to the prices of goods and services procured from revolving-fund institutions and from enterprises 51% or more of whose capital belongs to the public sector or which are within the scope of privatisation; and, in refunds arising from export transactions carried out by manufacturers, to have refunds made, by sector, up to a certain percentage of the export price instead of the value added tax borne.

Partial tax deduction:

1. Where transactions for which a right of deduction is granted under this Law and transactions for which no right of deduction is granted are carried out together, only the portion of the value added tax shown on invoices and similar documents that is attributable to the transactions for which a right of deduction is granted shall be deducted.

2. The Ministry of Finance and Customs is authorised to determine the procedures and principles relating to partial tax deduction.

Documentation of deduction:

1. Value added tax on goods and services procured domestically or imported may be deducted provided that it is shown separately on the purchase invoice or similar documents and on the customs receipt and that these documents are recorded in the statutory books.

2. In transactions where it is not deemed necessary to show value added tax separately on invoices and similar documents, the manner in which the tax deduction is to be documented shall be determined by the Ministry of Finance and Customs.

Changes in the tax base and deduction amounts:

Where a change occurs in the tax base due to the return of goods, the non-performance of the transaction, withdrawal from the transaction or other reasons, the taxpayer who carried out the taxable transactions shall adjust the tax for which it became liable, and the taxpayer who was the counterparty to these transactions shall adjust the tax it was entitled to deduct, in a manner consistent with the nature of the change and within the period in which the change occurred. However, it is required that the returned goods have actually entered the business and that this entry is shown in the book records and in the return.

Authority:

The President of the Republic is authorised to abolish in part or in whole, or to reintroduce, the right of deduction (…), and to determine the goods or services for which the right of deduction (…) is thus restricted; to allow value added tax whose refund was not requested within the time limit and which is carried forward to subsequent periods to be offset by way of deduction to be recorded as an expense in determining the income or corporate tax base; and to determine the minimum amount for which a refund request may be made.

Added paragraph: 29/3/2018, Law No. 7104, Art. 11 Added sentence: 28/7/2024, Law No. 7524, Art. 21 Refund requests arising from transactions giving rise to a right of refund under the provisions of this Law shall, as a rule, be fulfilled on the basis of the outcome of a tax inspection report. However, the Ministry of Treasury and Finance is authorised to determine taxpayers' tax compliance levels and different refund methods according to these compliance levels, on the basis of criteria such as the duration of tax liability, the number of employees, the size of assets and equity, the amount of tax paid, whether tax obligations have been fulfilled on time, and whether there is any adverse report or finding regarding the issuance or use of false documents or documents misleading as to their content, and to determine the tax debts against which refund receivables are to be set off and other procedures and principles relating to refunds.

Part Four

Assessment and Payment of the Tax

Chapter One

Taxation Methods

Taxation under the actual method:

Unless otherwise provided, taxpayers shall be taxed under the actual method.

Repealed: 22/7/1998, Law No. 4369, Art. 82; Re-enacted: 29/3/2018, Law No. 7104, Art. 12

Those whose commercial earnings are determined on the basis of business accounts and those whose professional earnings are determined according to the self-employment earnings book, and who fall within the sector and occupational groups determined by the President of the Republic, shall, if they so request, declare and pay, without associating it with the deductible value added tax, the value added tax that they calculate by applying to the price constituting the consideration for taxable transactions (including value added tax) the rate determined by the President of the Republic for the relevant sector or occupational group, not exceeding the highest rate determined pursuant to Article 28 of this Law.

Taxpayers taxed under the revenue-based taxation method within the scope of paragraph 1 shall, in determining their earnings, take into account the value added tax shown on purchase documents in respect of deliveries and services made to them and the value added tax they declare and pay under the revenue-based taxation method as an expense or cost, depending on the nature of the transaction, and the value added tax they calculate in respect of the deliveries and services they make as income.

Taxpayers who switch to the revenue-based taxation method may not leave this method until two years have passed.

Amended paragraph 4: 16/5/2018, Law No. 7144, Art. 6 The President of the Republic is authorised to bring income and corporate taxpayers keeping books on the balance-sheet basis under the provisions of the Tax Procedure Law within the scope of the revenue-based taxation method according to annual business volumes to be determined by sectors and occupational groups, and the Ministry of Finance is authorised to determine the procedures and principles relating to the implementation of this Article.

Chapter Two

Tax Period and Principle of Declaration

Tax period:

1. In value added tax, the tax period consists of the three-month periods of the calendar year in which activity is carried out. However, the Ministry of Finance and Customs is authorised to determine monthly tax periods instead of three-month tax periods according to taxpayers' annual gross revenues.

2. In the following cases, the tax period is:

a) For taxpayers taxed under the lump-sum method, one calendar year,

b) For those held responsible for withholding tax, one month,

c) In importation, transit and transport operations between Türkiye and foreign countries, Amended phrase: 27/1/2000, Law No. 4503, Art. 3 the moment of entry into or exit from the customs territory.

3. The Ministry of Finance and Customs is authorised to group taxpayers and to determine the starting months of tax periods for the groups. In that case, the requirement that the three-month periods fall within the same calendar year shall not apply.

Principle of declaration:

1. Unless otherwise provided in this Law, value added tax shall be assessed on the basis of the written returns of taxpayers.

2. In the cases specified in Article 9 of this Law, this return shall be filed by those held responsible for withholding tax.

3. Taxpayers who have no taxable transactions in any tax period are also obliged to file a return.

4. Value added tax levied on importation shall be assessed on the basis of the declaration in the customs entry declaration; in cases where no customs entry declaration is filed, value added tax relating to motor land vehicles, to freight and passenger transport between Türkiye and foreign countries and to transit transport shall be assessed on the basis of a special return to be filed by the taxpayers. In returns to be taken as the basis for assessment under this paragraph, the elements of the tax base and the tax rate must be clearly shown.

5. Added: 25/5/1995, Law No. 4108, Art. 35 The Ministry of Finance is authorised to require the institutions and organisations listed in paragraph 1 of Article 17 of this Law to file returns only for the periods in which they have taxable transactions, to accept the documents underlying the transaction in lieu of a return, and to determine the procedures and principles relating to the time of declaration and payment and to the collection of the tax of such taxpayers.

Time for filing returns:

1. Taxpayers (…) are obliged to file their value added tax returns with the relevant tax office by the evening of the twenty-fourth day of the month following the tax period, and those held responsible for withholding tax are obliged to file their value added tax returns with the relevant tax office by the evening of the twenty-first day of the month following the tax period.

2. Where the value added tax declaration must be made by a customs entry declaration or a special return, these returns shall be filed with the relevant customs administration at the moment the tax liability begins.

3. Repealed: 25/5/1995, Law No. 4108, Art. 39

4. Added: 3/6/1986, Law No. 3297, Art. 13 The value added tax return of taxpayers who cease business shall be filed by the evening of the twenty-fourth day of the month following the date on which the business ceased.

Form and content of returns:

The form and content of value added tax returns and the information relating to value added tax to be included in customs entry declarations shall be determined and regulated by the Ministry of Finance and Customs.

Chapter Three

Assessment Procedures

Place of assessment:

1. Value Added Tax shall be assessed by the tax office of the place where the taxpayer's place of business is located.

2. Where the taxpayer has places of business within the areas of activity of separate tax offices, Value Added Tax shall be assessed by the tax office to which the taxpayer is attached for income tax or Corporate Tax purposes.

3. In deliveries of immovable property, upon the request of the taxpayer, Value Added Tax shall be assessed upon declaration by the tax office of the place where the immovable property is located.

4. Value added tax levied on importation shall be assessed by the relevant customs administration.

5. Value Added Tax relating to transportation carried out by motor land vehicles between Türkiye and foreign countries and to transit transportation by persons whose domicile, legal seat and business centre are not located in Türkiye shall also be assessed by the relevant customs administration.

6. The Ministry of Finance and Customs is authorised to determine the place of assessment, taking into account the requirements of the activity, upon the application of the taxpayer or ex officio.

Person to whom the assessment is addressed:

Value Added Tax shall be assessed in the name of the natural or legal persons liable for this tax.

However:

a) In ordinary partnerships, any one of the partners, being jointly and severally liable for the payment of the tax,

b) In the case of natural persons not resident in Türkiye and legal persons neither of whose legal seat nor business centre is located in Türkiye, the person responsible for withholding tax under this Law; where no person held responsible for withholding tax can be found, the taxpayer's permanent representative in Türkiye; where there is more than one representative in Türkiye, the representative to be designated by the taxpayer; if no such designation has been made by the date of assessment, any one of the representatives; and, if there is no permanent representative, those who carry out transactions on behalf of the taxpayer,

shall be held as the addressees of the assessment.

Time of assessment:

Value Added Tax shall be assessed on the day on which the return is submitted or, if the return has been sent by post, within seven days following the date on which it reaches the office that is to assess the tax.

CHAPTER FOUR

Payment of the Tax

Payment of the tax:

1. Taxpayers obliged to submit a return (…)102 shall pay the value added taxes relating to a taxation period by the evening of the twenty-sixth day of the month in which they are to submit the return, and those held responsible for withholding tax shall pay the value added taxes relating to a taxation period by the evening of the twenty-third day of the month in which they are to submit the return.

2. Value added tax levied on importation shall be paid together with and at the same time as customs duty.

3. Value Added Tax relating to imports not subject to customs duty and to transportation carried out by motor land vehicles between Türkiye and foreign countries and to transit transportation by persons whose domicile, legal seat and business centre are located abroad shall be paid within the period for submitting the special returns relating to these transactions.

4. Amended: 25/5/1995, Law No. 4108, Art. 36 Value Added Tax of taxpayers who are not obliged to submit a return shall be paid within the assessment period.

Value added tax of taxpayers taxed under the lump-sum method shall be assessed and accrued within the framework of the procedures and principles of the Income Tax Law relating to lump-sum taxation and its provisions relating to the taxation period, and shall be paid within the payment periods of lump-sum income tax.

5. The Ministry of Finance is authorised to extend the time of payment of taxpayers who keep books on the basis of the business account method under the Tax Procedure Law until the end of the second month following the month in which the return is submitted, and, taking into account the nature of the transaction, to impose the condition that Value Added Tax be paid before the transaction.

6. Added: 6/12/1984, Law No. 3094, Art. 4; Repealed: 26/12/1993, Law No. 3946, Art. 38

CHAPTER FIVE

Provisions on Value Added Tax Collected by Customs Administrations

Customs receipt:

Value Added Tax levied at the time of importation shall be shown separately on the customs receipt.

Correction procedures:

In respect of Value Added Taxes not collected at all or collected incompletely on goods brought into the country without payment or with incomplete payment of the tax under this Law, action shall be taken in accordance with the principles of the Customs Law. Added sentence: 16/7/2004, Law No. 5228, Art. 18 However, value added tax paid according to returns submitted to the tax office for the taxation period in which the date on which the goods subject to transactions granting the right of deduction were released for free circulation falls, or for subsequent taxation periods (excluding amounts paid in the capacity of a responsible person), shall be deducted from the value added tax required to be collected due to non-payment or incomplete payment upon importation.

Added paragraph: 3/6/1986, Law No. 3297, Art. 14 In connection with imported goods, value added tax collected by mistake although exempt from value added tax, or found to have been collected in excess, shall be refunded under the Customs Law to taxpayers who do not have the right of deduction.

Transactions under guarantee:

Value Added Tax on all kinds of goods and values processed with customs duty secured by a guarantee pursuant to the Customs Law and other laws shall also be subject to the same procedure.

Added second paragraph: 4/5/1994, Law No. 3986, Art. 14; Repealed: 22/7/1998, Law No. 4369, Art. 82

Added: 27/1/2000, Law No. 4503, Art. 2 The Ministry of Finance is authorised to have transactions carried out by securing with a guarantee the value added tax payable on the importation of materials to be used in the manufacture of products to be exported, to determine the transactions subject to guarantee, and to determine the type, form and amount of the guarantee and the procedures and principles relating to implementation.

Addressee:

1. Value Added Tax assessed at customs shall be notified to the taxpayer present at the time of assessment, to the taxpayer's legal representative, to the commission agent acting on the taxpayer's behalf, and to those who are the addressees of the customs or transit procedure.

2. For actions to be brought upon this notification, the procedures and principles to which Customs Duty is subject shall apply.

Procedures applicable to differences in the tax base:

In respect of tax differences calculated on the basis of the difference between the tax base declared by taxpayers upon importation and the tax bases found by those carrying out accrual or examination or by those authorised to carry out inspection, penalties shall be applied pursuant to the Customs Law in accordance with the principles applicable to Customs Duty.

Specific tax:

In cases where Customs Duty is levied at a specific (fixed) amount, the single specific tariff shall be determined so as to include the Value Added Tax to be levied on importation.

PART FIVE

Procedural Provisions

Issuance of invoices and similar documents:

The term invoices and similar documents used in this Law refers to the documents regulated in the Tax Procedure Law.

Record-keeping system:

1. Value added taxpayers shall arrange their mandatory book records in a manner that enables the calculation and control of this tax.

These records must clearly show at least the following matters:

a) The nature of taxable transactions, their amounts exclusive of tax, the tax calculated, and the amounts of deductible tax,

b) The nature of transactions exempted from the tax and their classification according to whether or not the right of deduction is granted, and the amount of deductible tax calculated,

c) The nature of transactions that cannot be subject to deduction and the amounts of tax relating to these transactions,

d) Changes in the amounts of the tax base and deductions, and taxes paid, written off and refunded.

2. Those dealing in goods are obliged to separate and show in the inventory of goods or in the inventory book the goods existing at the end of the accounting period according to whether or not they are subject to Value Added Tax.

Tax security:

Stocks of raw materials, semi-finished goods and finished goods existing in the factories, workshops, commercial premises, branches, sales stores and warehouses of taxpayers, even if sold or pledged to third parties, shall serve as security for Value Added Tax and the related surcharges and penalties, and the said receivable of the treasury shall be collected first from their proceeds.

PART SIX

Miscellaneous Provisions

Minimum yield rates and unit sale prices:

1. The Ministry of Finance and Customs is authorised to determine minimum yield rates by specific branches of business and trade in manufacturing and construction works on the basis of raw materials, auxiliary materials, energy, labour and similar measures, and to determine minimum unit sale prices in purchase and sale and service works.

2. The Value Added Tax of taxpayers may not be lower than the Value Added Tax to be calculated according to these rates and unit sale prices.

Obligation to show the tax on the label:

1. Labels of goods sold at retail shall clearly state whether or not Value Added Tax is included in the sale price. If the tax is excluded from the sale price, its amount shall be shown separately.

2. The above provision shall not apply to transactions in which it is not deemed necessary to show Value Added Tax separately on invoices and similar documents.

The tax may not be recorded as an expense:

Value Added Tax calculated on the taxable transactions of the taxpayer and Value Added Tax deductible by the taxpayer shall not be accepted as an expense in determining the Income and Corporate Tax bases.

Scope of application of laws:

Provisions in the Tax Procedure Law and other laws relating to the taxes abolished by this Law that are not contrary to this Law shall also be deemed valid with respect to Value Added Tax.

Additional tax:

Repealed: 6/6/2002, Law No. 4760, Art. 18

CHAPTER ONE

Repealed Provisions

Repealed provisions:

a) Expenditure Taxes Law No. 6802 (excluding its provisions relating to banking and insurance transactions taxes),

b) Business Tax Law No. 2456,

c) The provisions of Finance Law No. 1318 relating to the Spor-Toto Tax,

d) The provisions of Law No. 6747 relating to the Sugar Consumption Tax,

are hereby repealed.

Compensatory Taxation Method:

1. The Ministry of Finance and Customs is authorised to tax, under the compensatory taxation method, those taxpayers engaged in the retail sale of goods who fall within the business groups or sectors it shall determine.

2. Amended: 6/12/1984, Law No. 3099, Art. 6 Under the compensatory taxation method, Value Added Tax shall be calculated by applying to the purchase prices of goods, at the time of the purchase of goods, a final tax rate equal to the statutory tax rate increased by 30%.

3. Taxpayers subject to this method shall not apply Value Added Tax on their sales of goods and services. Those who purchase goods and services from these taxpayers shall have no right of tax deduction for these purchases.

4. Taxpayers subject to this method shall, if they so wish, be subject to Value Added Tax according to the general principles.

5. This method may be applied for a period of 10 years following the date of entry into force of the Law.

1. Where an invoice or similar document has been issued or payment has been made before the date on which this Law enters into force, but the transactions relating to that document or payment are carried out after the entry into force of the Law, the provisions of this Law shall apply to the whole of the transaction.

2. The part of all kinds of construction and contracting works extending over more than one calendar year that is performed after the date on which this Law enters into force shall be subject to tax according to the procedures and principles to be determined by the Ministry of Finance and Customs.

In lease contracts concluded before the entry into force of this Law and extending into the period after its entry into force, the rent corresponding to the period after the date of entry into force of the Law shall be subject to Value Added Tax, even if the rent has been collected in advance. Where the rent for this period has been collected before the entry into force of the Law, the manner in which the Value Added Tax relating to this amount shall be paid shall be determined by the Ministry of Finance and Customs.

1. Production Tax relating to or embodied in goods whose delivery or importation is subject to Value Added Tax under this Law and which have been declared as stock goods shall be deducted from the Value Added Tax to be paid in the first taxation period following the delivery of these goods.

2. The procedures and principles relating to the deduction to be made under this article, and the principles relating to the time, form and content of the stock return, shall be determined by the Ministry of Finance and Customs.

1. In order to make expenditures relating to the preparation and implementation of Value Added Tax, for a period of 10 years beginning from 1985, the Minister of Finance and Customs is authorised to pool in a fund up to 30% of the total appropriations for each year included in the programme "Services Relating to State Revenues: Management, Implementation, Audit and Adjudication Services" with code number 112 in schedule (A) of the Budget Laws pertaining to the Ministry of Finance and Customs, and to determine how much of each expenditure item shall be transferred to the fund.

2. All kinds of expenditures from this fund relating to the establishment of new tax offices by purchasing or renting buildings, the furnishing of tax offices, mechanisation, the preparation of printed forms and other implementation services, and training and promotional activities shall be made without being subject to Laws No. 1050 and 2886, Decree Law No. 121 and its annexes, and the visa provisions in Articles 30 to 37 of Law No. 832.

3. The Ministry of Finance and Customs is authorised to pay overtime and travel allowances to personnel assigned to services relating to the use of the fund, without being limited by the Budget Laws and other legislation, and to employ temporary personnel to work in these services.

4. The printing, storage and distribution services of printed forms relating to Value Added Tax shall be carried out by the General Directorate of Revenues.

Added: 26/3/1987, Law No. 3336, Art. 1

Deliveries of immovable property by fully liable corporations within the scope of Provisional Article 10 of Corporate Tax Law No. 5422 in the years 1987, 1988 and 1989 are exempt from the tax.

Value Added Tax borne in the acquisition of immovable property delivered in this manner and which cannot be deducted shall be accepted as an expense in determining the Corporate Tax base.

However, where, owing to a sale on credit, the whole of the gain is not converted into paid-in capital within 2 years from the beginning of the calendar year following the delivery, the Value Added Tax to be calculated according to the Value Added Tax rate in force on the date of the delivery, on the amount remaining after deducting from the sale price of the immovable property the part converted into paid-in capital, shall be collected together with late payment surcharge from the maturity date arising from the delivery, in accordance with the provisions of Law No. 6183 on the Procedure for the Collection of Public Receivables.

Added: 19/6/1987, Law No. 3393, Art. 3

Sales of commercial licence plates made by traffic commissions authorised by Council of Ministers Decision in provinces where licence plate restrictions are applied are exempt from value added tax until 31/12/1987.

Added: 19/6/1987, Law No. 3393, Art. 4

Deliveries of residences with a net area of up to 150 m2 and construction contracting works performed for housing construction cooperatives are exempt from value added tax until 31/12/1997.

Added: 3/12/1988, Law No. 3505, Provisional Art.

Construction contracting works performed for social security institutions established by Law and for municipalities, limited exclusively to construction contracting works carried out for residences not exceeding 150 m2, are exempt from value added tax until 31/12/1997.

Added: 25/5/1995, Law No. 4108, Art. 37

Amended first paragraph: 20/6/2001, Law No. 4684, Art. 19 Deliveries within the scope of provisional Article 28 of Corporate Tax Law No. 5422 and of subparagraphs (6) and (7) of the first paragraph of provisional Article 29 thereof are exempt from the tax.

Value added tax borne in the acquisition of assets delivered in this manner and which cannot be deducted in the period in which the delivery is made shall be accepted as an expense in determining the corporate tax base for that accounting period.

However, where the whole of the gain arising from the sale is not converted into paid-in capital by the end of the second accounting period starting from the beginning of the accounting period following the delivery, the value added tax relating to the part of the gain arising from the sale that is not converted into paid-in capital shall be calculated according to the value added tax rate in force on the date of the delivery and assessed in accordance with the provisions of Tax Procedure Law No. 213.

Added: 25/5/1995, Law No. 4108, Art. 37

Value added tax for the 1995 taxation period shall not be sought from taxpayers subject to the lump-sum method.

Added: 25/5/1995, Law No. 4108, Art. 37

Transactions of delivery and leasing, within the framework of the provisions of Law No. 4046, of economic assets taken into the scope of privatisation under paragraph (A) of Article 1 of that Law are exempt from the tax. With respect to transactions exempted within this scope, the provision of subparagraph (a) of Article 30 of the Value Added Tax Law shall not apply.

Added: 22/7/1998, Law No. 4369, Art. 62

Value added tax shall be calculated at the rate of 10% on the value of machinery, equipment and fixtures declared pursuant to Provisional Article 48 added to the Income Tax Law, at the rate of 10% on the value of goods subject to the general and increased rates, and on the value of other goods on the basis of half of the rates to which such goods are subject, and shall be declared with a separate return in the capacity of a responsible person and paid. The tax paid on machinery, equipment and fixtures may not be deducted from the calculated value added tax. The tax paid on goods shall be deducted according to the general principles. The provision of paragraph 2 of Article 9 of the Value Added Tax Law shall not apply to these goods, machinery, equipment and fixtures.

Added: 22/7/1998, Law No. 4369, Art. 62

For investment goods listed in investment incentive certificates obtained up to the date of publication of this Law that do not qualify as machinery and equipment, the provision of the second paragraph of Article 49 of the Value Added Tax Law, as repealed by this Law, shall apply.

Added: 22/7/1998, Law No. 4369, Art. 62

With respect to constructions for which a building construction permit was obtained before the date of publication of this Law:

a) Construction contracting works performed for housing construction cooperatives,

b) Construction contracting works performed for social security institutions established by law and for municipalities, limited exclusively to residences not exceeding 150 m2,

are exempt from value added tax.

Added: 22/7/1998, Law No. 4369, Art. 62

The amount of tax relating to deliveries and services whose tax rate has been reduced by the Council of Ministers pursuant to Article 28 of the Value Added Tax Law, and which could not be deducted by the end of the month following the publication of this Law, may be taken into account as an expense in determining the income or corporate tax base. The amount of tax so recorded as an expense may not be made subject to deduction. Except for those relating to basic foodstuffs, the amount of tax not recorded as an expense shall not be refunded.

Added: 22/7/1998, Law No. 4369, Art. 62

The President of the Republic is authorised to have transactions carried out, by regions, sectors or groups of goods, in accordance with the provisions of subparagraph (c) of paragraph 1 of Article 11 of the Value Added Tax Law, in the delivery until 31/12/2030 of materials to be used in the production of goods to be exported within the scope of the inward processing and temporary admission regimes. In the application of this article, the periods envisaged under these regimes shall be taken as the export period instead of the period in the said subparagraph. Where the export is not carried out in compliance with the conditions, the tax not collected on time shall be collected from the purchaser together with late payment interest, with a tax loss penalty applied.

Added: 9/4/2003, Law No. 4842, Art. 24

The provision of subparagraph (d) of Article 13 of this Law shall also apply to deliveries of machinery and equipment made within the scope of the certificate, up to the date of entry into force of this article, to holders of an incentive certificate who are not value added taxpayers.

Added: 9/4/2003, Law No. 4842, Art. 24; Amended: 16/7/2004, Law No. 5228, Art. 19

Deliveries and services to be made for this purpose to those organising meetings to be held in Türkiye within the framework of international agreements to which Türkiye is a party, as well as the accommodation of foreign delegations attending these meetings and deliveries and services to be made to them in the performance of their duties, are exempt from value added tax until 31.12.2005.

Taxes borne for goods and services delivered within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by deduction shall not be refunded. The Council of Ministers is authorised to determine the threshold set out in Article 232 of Tax Procedure Law No. 213 and applicable in the relevant year as the minimum amount in the application of the exemption, and to increase this amount up to twofold or reduce it down to zero.

The Ministry of Finance is authorised to define the deliveries and services relating to the meetings and to determine the procedures and principles relating to the exemption.

Added: 25/12/2003, Law No. 5035, Art. 11

1. Deliveries and services in the form of system management, data management, business applications, sectoral, internet, game, mobile and military command and control application software produced exclusively in technology development zones and specialised technology development zones by entrepreneurs operating in such zones under the Technology Development Zones Law No. 4691, during the period in which their earnings are exempt from income or corporate tax, shall be exempt from value added tax. Added sentence: 29/3/2018, Law No. 7104, Art. 14 With respect to transactions exempted within this scope, the provision of subparagraph (a) of paragraph 1 of Article 30 of this Law shall not apply.

The Ministry of Finance is authorised to set a minimum threshold for the consideration that will benefit from the exemption by type of program and licence, to define the software programs to which the exemption will apply, and to determine the procedures and principles for its implementation.

2. Taxes borne in connection with transactions carried out up to the date of publication of this Law and falling within the scope of both full exemption and partial exemption shall be refunded in accordance with Article 32 of the Value Added Tax Law.

3. In construction contracting works begun before the date of publication of this Law, the provision of subparagraph (c) of paragraph (1) of Article 16 of the Value Added Tax Law, as it stood before being amended by this Law, shall apply.

4. In refund claims relating to transactions subject to the reduced rate carried out in calendar year 2003, action shall be taken in accordance with the provision of paragraph (2) of Article 29 of the Value Added Tax Law as it stood before being amended by this Law.

Added: 16/7/2004, Law No. 5228, Art. 20

Deliveries of immovable property to be made by the General Directorate of Highways and deliveries of immovable property with title deeds recorded among the fixed assets of the Revolving Fund of the General Directorate of Forestry shall be exempt from value added tax until 31.12.2006.

Added: 10/11/2004, Law No. 5255, Art. 14; Amended: 3/7/2005, Law No. 5398, Art. 25

Deliveries and services to be made, in connection with the World University Games to be held in the City of İzmir in 2005, to the İzmir Universiade Games Preparation and Organisation Board and, provided that they are used in these games, to the institutions and organisations approved by the said Organisation Board, as well as the delivery to the İzmir Universiade Games Preparation and Organisation Board of goods received by the Organisation Committee existing as of the date on which this Article enters into force, shall be exempt from value added tax.

Taxes borne on account of the exemptions regulated in this Article may be deducted from the taxes calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded in cash or by way of set-off, in accordance with the provisions of Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Finance is authorised to define the deliveries and services falling within the scope of the exemptions in this Article and to determine the procedures and principles relating to the exemption.

Added: 30/12/2004, Law No. 5281, Art. 35

Deliveries free of charge of computers and their hardware to the Ministry of National Education, and deliveries of software and services relating thereto, as well as the delivery and supply of these goods and services to those who will make the donation, shall be exempt from Value Added Tax until 31/12/2023.

Taxes borne for deliveries and services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be eliminated by deduction shall not be refunded. The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption.

Added: 21/4/2005, Law No. 5335, Art. 13

1. Deliveries and services made by Türk Telekom to Türksat Satellite Communications, Cable TV and Operation Joint-Stock Company in connection with the transfer, assignment and succession transactions within the scope of provisional Article 10 of the Telegraph and Telephone Law No. 406 dated 4.2.1924 shall be exempt from value added tax.

2. Deliveries, until 31.12.2006, of real property and participations within the scope of Article 20 of Law No. 5434 dated 8.6.1949 shall be exempt from value added tax.

3. Taxes borne for deliveries and services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be eliminated by way of deduction shall not be refunded. The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption.

Added: 4/6/2008, Law No. 5766, Art. 12

Where taxpayers who, before the date of entry into force of this Article, waived the exemption regulated in subparagraph (s) of paragraph (4) of Article 17 of the Law withdraw their requests to waive the exemption by the end of the month following the date of entry into force of this Article, the provision in the second sentence of paragraph (3) of Article 18 shall not apply. The Ministry of Finance is authorised to determine the procedures and principles for the application of this provision.

Added: 4/6/2008, Law No. 5766, Art. 12

Amended paragraph 1: 27/3/2015, Law No. 6637, Art. 3 Deliveries of goods and supplies of services to be made for the official use of international organisations operating in Türkiye within the framework of host government agreements or other agreements to which our country is a party, and of programmes, funds, representative offices and specialised agencies affiliated with such organisations; deliveries of goods and supplies of services to be made by them free of charge for the purpose of social and economic assistance; and the delivery and supply to them of goods and services relating to the free-of-charge deliveries of goods and supplies of services, shall be exempt from value added tax for as long as the activities in Türkiye of the relevant organisations, representative offices, programmes, funds and specialised agencies continue or the international agreements relating to the relevant organisations remain in force.

Added paragraph: 27/3/2015, Law No. 6637, Art. 3 Deliveries of goods and supplies of services to be made to members, who are not citizens of the Republic of Türkiye, serving in the managerial staff of the organisations benefiting from the exemption in paragraph 1, during the period in which they are on duty in Türkiye, shall also be exempt from value added tax.

Added paragraph: 31/5/2012, Law No. 6322, Art. 23 Taxes borne on account of the exemptions regulated in this Article shall be deducted from the taxes calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded in cash or by way of set-off, in accordance with the provisions of Article 32, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Finance is authorised to determine the procedures and principles relating to the application of this exemption.

Added: 15/10/2008, Law No. 5804, Art. 3

(1) Deliveries of goods and supplies of services to be made to the Forum Secretariat responsible for the organisation of the Fifth World Water Forum to be held in İstanbul in March 2009, for the purpose of holding this Forum, shall be exempt from value added tax.

(2) The Ministry of Finance is authorised to determine the procedures and principles relating to the application of the exemption.

Added: 16/6/2009, Law No. 5904, Art. 16

(1) Deliveries of residences to their members by housing construction cooperatives that obtained a building construction permit before the date of entry into force of this Article shall be exempt from value added tax.

Added: 31/3/2012, Law No. 6288, Art. 1

Deliveries of goods and supplies of services made during the investment period within the scope of the project, upon the award of the tender, to those assigned or undertaking the project, in respect of: projects to be carried out under the build-operate-transfer model pursuant to Law No. 3996 dated 8/6/1994 on the Realisation of Certain Investments and Services under the Build-Operate-Transfer Model; projects relating to health facilities which the High Planning Council has decided to have built in return for lease pursuant to additional Article 7 of the Basic Law on Health Services No. 3359 dated 7/5/1987; and projects relating to education and training facilities which the Ministry has decided to have built in return for lease pursuant to Article 23 of Decree Law No. 652 dated 25/8/2011 on the Organisation and Duties of the Ministry of National Education; being those for which a tender or assignment notice was published before the date of entry into force of this Article but for which no bids were received, and those for which a tender or assignment notice will be published until 31/12/2028, shall be exempt from value added tax.

In works for which bids were received, or the tender or assignment was made, before the date of entry into force of this Article, deliveries of goods and supplies of services within the scope of paragraph 1 after the date of entry into force of this Article shall also be held exempt from value added tax if the assigned company or the contractor makes a request within three months from the date of entry into force of this Article. However, in order for this exemption to apply, it is required that these companies undertake, by means of a letter of undertaking whose content shall be determined by the administration, that the amount of financing cost that would arise according to the main loan financing conditions of the project on the amount of value added tax to be borne by the assigned company or the contractor during the investment period on account of the project, until the date on which it can be offset by way of deduction, or the period corresponding thereto, shall be deducted, as applicable, from the operating period in projects providing for an operating period, or from the lease amount or lease period in projects providing for a lease, and that this undertaking be accepted by the administration. The deductions shall be made taking into account the principles provided for in the contracts relating to the projects concerned.

Taxes borne on account of deliveries of goods and supplies of services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, in accordance with the provision of Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Finance is authorised to define the deliveries and services falling within the scope of the exemption and to determine the procedures and principles relating to the exemption and the refund.

Refund in large (…) investments:

Added: 31/5/2012, Law No. 6322, Art. 25

To be applied until 31/12/2023, value added tax borne on account of construction works relating to (…)118 investments for which a fixed investment of at least 500 million Turkish Lira is envisaged within the scope of investment incentive certificates, and which cannot be offset by way of deduction by the end of the calendar year, shall be refunded to the taxpayer holding the certificate if requested in the following year. Where the investment subject to the incentive certificate is not completed, the refunded taxes shall be collected together with late payment interest from the date of refund, with a tax loss penalty being applied. The limitation period for these taxes and their penalties shall begin at the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurred.

Added paragraph: 20/8/2016, Law No. 6745, Art. 36 The President of the Republic is authorised to reduce the minimum fixed investment amount set out within the scope of this Article, by sector or collectively, down to 50 million Turkish lira, or to increase it up to twofold.

The Ministry of Finance is authorised to determine the procedures and principles for the application of this Article.

Added: 13/6/2012, Law No. 6327, Art. 13

The transfer and delivery of immovable property and participation shares (including sale at an auction venue) for the purpose of transferring, in part or in full, to the individual pension system the domestic or foreign accumulations, and the amounts relating to commitments (including those arising from payments customarily made until the date of transfer in accordance with the principles of the plan), under pension commitment plans existing as of 16/4/2012 with associations, foundations, funds, professional organisations having legal personality or other commercial companies that have made pension-related commitments to their members or employees pursuant to paragraph 5 of provisional Article 1 of the Individual Pension Savings and Investment System Law No. 4632 dated 28/3/2001, shall be exempt from value added tax, to be applied until 31/12/2017. This exemption shall be applied in proportion to the amount transferred.

The Ministry of Finance is authorised to determine the procedures and principles relating to the application of this Article.

Added: 24/5/2013, Law No. 6487, Art. 23

Transfers and deliveries, to be made between the Ministry of Transport, Maritime Affairs and Communications, municipalities and their affiliated entities, of urban rail transport systems, metros, trams, cable cars, chairlifts and funiculars, together with their lines, stations, passenger terminals and stops, and the facilities relating to these works and transactions, as well as their appurtenances or integral parts, shall be exempt from value added tax until 31/12/2028.

Taxes borne for deliveries and services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be eliminated by deduction shall not be refunded. The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption.

Added: 10/9/2014, Law No. 6552, Art. 27

The transfer and delivery of immovable property to the Social Security Institution within the scope of provisional Article 41 of the Social Insurance and General Health Insurance Law No. 5510 dated 31/5/2006, and the transfer and delivery of such immovable property by the Social Security Institution (including sales made at auction venues), shall be exempt from value added tax until 31/12/2028.

With respect to transactions exempted from tax within this scope, the provision of subparagraph (a) of paragraph 1 of Article 30 shall not apply. The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption.

Added: 27/3/2015, Law No. 6637, Art. 24

Deliveries and services made, as from 1/1/2014, to those carrying out the construction and modernisation of transit petroleum pipeline projects that have been exempted from value added tax under the provisions of international agreements which entered into force in due form before the date of entry into force of this Article and which fall within the scope of the Law No. 4586 dated 23/6/2000 on the Transit Passage of Petroleum through Pipelines shall be exempt from value added tax.

Taxes borne on account of deliveries of goods and supplies of services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, in accordance with the provision of Article 32, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Finance is authorised to define the deliveries and services falling within the scope of the exemption and to determine the procedures and principles relating to the exemption and the refund.

Added: 27/3/2015, Law No. 6639, Art. 14

Transactions of transfer and delivery to the Treasury of immovable property expropriated by way of exchange within the scope of improvement, renewal and transformation projects to be carried out in the area whose boundaries and coordinates are shown and whose implementation procedures and principles were determined by Council of Ministers Decision No. 2011/2266 dated 26/9/2011, which entered into force upon publication in the Official Gazette No. 28076 dated 6/10/2011, shall be exempt from value added tax, stamp duty and title deed fees until 31/12/2020. No gain shall be deemed to have arisen under the Income Tax and Corporate Tax Laws on account of the transfer of such immovable property to the Treasury until 31/12/2020.

Added: 18/1/2017, Law No. 6770, Art. 9

Value added tax shall not be sought in respect of deliveries of immovable property made, before the date of entry into force of this Article, by municipalities and special provincial administrations without forming an economic enterprise; accordingly, no retrospective assessment shall be made, assessments previously made shall be abandoned provided that any actions filed are waived, accrued amounts shall be cancelled, and amounts collected shall not be rejected and refunded.

The Ministry of Finance is authorised to determine the procedures and principles for the application of this Article.

Added: 18/1/2017, Law No. 6770, Art. 10 Amended: 8/4/2022, Law No. 7394, Art. 11

Deliveries of goods and supplies of services relating to construction works within the scope of the certificate made to taxpayers holding investment incentive certificates for the manufacturing industry and tourism shall be exempt from value added tax until 31/12/2025.

Where the investment subject to the incentive certificate is not completed, the taxes not collected in due time shall be collected from the purchaser holding the investment incentive certificate together with late payment interest, with a tax loss penalty being applied. The limitation period for these taxes and their penalties shall begin at the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurred.

Taxes borne on account of deliveries of goods and supplies of services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, in accordance with the provision of Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The President of the Republic is authorised to extend the period set out in paragraph 1 by up to three years; the Ministry of Treasury and Finance is authorised to determine the procedures and principles for the application of this Article.

Added: 28/11/2017, Law No. 7061, Art. 44

To be applied to purchases of goods and services made by the Ministry of National Education within the scope of the Movement to Increase Opportunities and Improve Technology in Education (FATİH) Project pursuant to contracts concluded as of the date on which this article enters into force;

a) In relation to the Project components, importations made by the Ministry of National Education and deliveries of goods and supplies of services made to this Ministry shall be exempt from value added tax (Taxes borne in connection with deliveries of goods and supplies of services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, pursuant to Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption. The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption and refund.).

b) The initial establishment of mobile telephone subscriptions dedicated to the internet use designated for the Project components, and electronic communications services provided in relation to the Project components, shall be exempt from the special communication tax levied under Article 39 of Law No. 6802 (Taxes borne in connection with electronic communications services provided within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded upon the request of the taxpayer carrying out transactions within the scope of the exemption. The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption and refund.).

c) Papers to which the administration and/or the project contractors are party, drawn up in connection with purchases of goods and services relating to the Project components, shall be exempt from the stamp duty levied under the Stamp Duty Law No. 488 of 1/7/1964.

ç) All kinds of vehicles, tools, equipment, materials, machinery and products, and spare parts thereof, to be released for free circulation by the Ministry of National Education, or on behalf of this Ministry by the Project contractors and subcontractors, shall be exempt from the customs duties and funds levied under Law No. 4458; the papers drawn up in relation to such importation shall be exempt from stamp duty, and the transactions to be carried out shall be exempt from fees (The Ministry of National Education is authorised to issue the documents certifying the conformity with this Project of the goods to be released for free circulation by the Project contractors and subcontractors.).

d) In relation to the Project components, the delivery of goods included in list (IV) annexed to Law No. 4760 to the Ministry of National Education or to the project contractor, or their importation by these, shall be exempt from special consumption tax (The Ministry of Finance is authorised to determine the procedures and principles relating to the exemption.).

e) Revenues obtained, from deliveries of goods and supplies of services made to the Ministry of National Education or to project contractor undertakings, by operators authorised or deemed authorised by signing a task or concession contract with the Information and Communication Technologies Authority under Law No. 406, or by way of notification to this Authority or grant of a right of use by this Authority under the Electronic Communications Law No. 5809 of 5/11/2008, shall not be included in the calculation of the Treasury share and the contribution to the Authority's expenses levied on these operators under additional Article 37 of Law No. 406, the universal service revenues levied under Article 6 of the Universal Service Law No. 5369 of 16/6/2005, the administrative fee levied under Article 11 of Law No. 5809, or the radio fee levied under paragraph (7) of Article 46 of the same Law.

f) The deductions specified in the second paragraph of Article 44 of the Law on Intellectual and Artistic Works No. 5846 of 5/12/1951 shall not be made for computers, tablet computers and interactive boards to be procured in relation to the Project components (The Ministry of National Education is authorised to issue the documents ensuring that no deduction is made from goods procured within this scope.).

g) The banderole fee provided for in paragraph (a) of Article 4 of the Law on Revenues of the Turkish Radio and Television Corporation No. 3093 of 4/12/1984 shall not be collected from computers, tablet computers and interactive boards to be procured in relation to the Project components (The Ministry of National Education is authorised to issue the documents ensuring that no banderole fee is collected from goods procured within this scope.).

ğ) The radio licence and annual usage fees provided for in Article 46 of Law No. 5809 shall not be collected for the radio equipment and systems belonging to subscriptions established in relation to the Project components.

h) Where, in purchases of goods and services to be made within the scope of the Project, the tender contractor for the Project components establishes a special purpose company in order to carry out activities relating to this Project, this company shall be liable only for the taxes and financial obligations that it must itself pay under the relevant legislation, and shall not be held liable for the Treasury share, contribution to the Authority's expenses, universal service contribution, administrative fee, special communication tax and radio fees payable by the tender contractor.

Added: 21/3/2018, Law No. 7103, Art. 31

Deliveries of new machinery and equipment made to value added taxpayers holding an industrial registry certificate under the Industrial Registry Law No. 6948 of 17/4/1957, exclusively for use in the manufacturing industry, and deliveries of new machinery and equipment made, exclusively for use in these activities, to persons engaged in R&D, innovation and design activities in technology development zones and specialised technology development zones within the scope of the Technology Development Zones Law No. 4691 of 26/6/2001, in R&D and design centres within the scope of the Law No. 5746 of 28/2/2008 on Supporting Research, Development and Design Activities, and in research laboratories within the scope of the Law No. 6550 of 3/7/2014 on Supporting Research Infrastructures, shall be exempt from value added tax until 31/12/2022.

Taxes borne in connection with deliveries made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, pursuant to Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

Where machinery and equipment acquired within the scope of the exemption are used outside the manufacturing industry or R&D, innovation and design activities, or are disposed of, within three years from the beginning of the calendar year following the date of delivery, the tax not collected in due time shall be collected from the purchaser together with late payment interest, with a tax loss penalty applied. The limitation period for taxes not collected in due time and for tax penalties shall begin from the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurs.

The President of the Republic is authorised to determine the machinery and equipment to be delivered within the scope of the exemption for use in the manufacturing industry and to extend the period specified in the first paragraph by up to two years, and the Ministry of Finance is authorised to determine the procedures and principles relating to the implementation of this article.

Added: 18/1/2019, Law No. 7162, Art. 6

Deliveries of goods and supplies of services to be made by reason of these matches, in connection with the 2023 UEFA Champions League Final match, to those among the Union of European Football Associations (UEFA), the participating football clubs and the legal persons assigned in the organisation that do not have a place of business, legal seat or business centre in Türkiye, and deliveries of goods and supplies of services to be made by them by reason of these matches, shall be exempt from value added tax.

Taxes borne by reason of the exemptions regulated in this article shall be deducted from the taxes calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded in cash or by way of set-off, pursuant to the provisions of Article 32, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Treasury and Finance is authorised to determine the procedures and principles relating to the implementation of the exemption and refund.

Added: 25/11/2020, Law No. 7257, Art. 1

Transfers within the scope of additional Article 1 of the Natural Gas Market Law No. 4646 of 18/4/2001 shall be exempt from value added tax. Taxes borne for transactions carried out within this scope shall be deducted from the tax calculated by reason of taxable transactions. Taxes that cannot be offset by way of deduction shall not be refunded. The Ministry of Treasury and Finance is authorised to determine the procedures and principles relating to the implementation of the exemption.

Added: 8/4/2022, Law No. 7394, Art. 12

Engineering services included within the scope of the investment incentive certificate and provided, for the development of these vehicles, to taxpayers that have been decided to benefit from incentives within the scope of Article 80 of the Law No. 6745 of 20/8/2016 on Supporting Investments on a Project Basis and Amending Certain Laws and Decree-Laws and that, within this scope, manufacture in Türkiye electric motor vehicles developed as a result of R&D activities carried out exclusively in Türkiye for the development of technologies that will completely eliminate greenhouse-effect exhaust gas emissions, shall be exempt from value added tax until 31/12/2023. Where the investment subject to the incentive certificate is not completed, the tax not collected in due time shall be collected from the purchaser together with late payment interest, with a tax loss penalty applied. The limitation period for taxes not collected in due time and for tax penalties shall begin from the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurs.

Taxes borne in connection with services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, pursuant to Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Treasury and Finance is authorised to determine the procedures and principles relating to the implementation of this article.

Added: 14/7/2023, Law No. 7456, Art. 8

For immovables included in the assets of corporations before the date of entry into force of this article, the provisions in force before the amendment made, by the Law introducing this article, to subparagraph (r) of paragraph (4) of Article 17 of this Law shall apply.

Added: 14/7/2023, Law No. 7456, Art. 9

In places accepted as disaster areas affecting general life due to the earthquakes that occurred on 6/2/2023, deliveries and services made to professional organisations having the status of public institutions in connection with the construction of dwellings to be donated to disaster victims within the scope of a protocol signed with the Disaster and Emergency Management Presidency shall be exempt from value added tax until 31/12/2024.

Taxes borne in connection with deliveries and services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, pursuant to Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The President of the Republic is authorised to extend the period specified in the first paragraph by up to one year; the Ministry of Treasury and Finance is authorised to define the deliveries and services that will fall within the scope of the exemption and to determine the procedures and principles relating to the exemption and refund.

Added: 28/7/2024, Law No. 7524, Art. 23

In places accepted as disaster areas affecting general life due to the earthquakes that occurred on 6/2/2023, deliveries and services made as of 1/1/2024 to foreign state institutions and organisations in connection with the construction of immovables such as dwellings, workplaces, schools, student dormitories, hospitals, places of worship, culture and art centres and libraries, to be donated to general budget public administrations within the scope of a protocol signed between general budget public administrations and foreign state institutions and organisations, and the delivery to foreign state institutions and organisations of dwellings to be donated in these places to general budget public administrations within the scope of a protocol signed between general budget public administrations and foreign state institutions and organisations, shall be exempt from value added tax until 31/12/2028.

Taxes borne in connection with deliveries and services made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, pursuant to Article 32 of this Law, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Treasury and Finance is authorised to determine the procedures and principles relating to the implementation of this article.

Added: 4/12/2025, Law No. 7566, Art. 15

Deliveries of goods and supplies of services to be made by reason of these matches and the organisation, in connection with the 2026 UEFA Europa League Final and 2027 UEFA Conference League Final matches and the 2032 UEFA European Football Championship organisation, to those among the Union of European Football Associations (UEFA), the participating teams and the legal persons assigned in the organisation that do not have a place of business, legal seat or business centre in Türkiye, and deliveries of goods and supplies of services to be made by them by reason of these matches and the organisation, shall be exempt from value added tax.

Taxes borne by reason of the exemptions regulated in this article shall be deducted from the taxes calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded in cash or by way of set-off, pursuant to the provisions of Article 32, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

The Ministry of Treasury and Finance is authorised to determine the procedures and principles relating to the implementation of the exemption and refund.

Added: 24/7/2026, Law No. 7590, Art. 9

(1) To be applied until 31/12/2045, value added tax borne, as of the date on which this article enters into force, in connection with construction works relating to nuclear power plant investments within the scope of the investment incentive certificates of taxpayers that have obtained a preliminary licence and/or licence to engage in electricity generation activities at nuclear power plants, and which cannot be offset by way of deduction as of the six-month periods of the calendar year, shall be refunded to the taxpayer if requested within one year following the six-month periods.

(2) To be applied until 31/12/2045, deliveries of machinery and equipment to be made in relation to nuclear power plant investments within the scope of the investment incentive certificates of taxpayers that have obtained a preliminary licence and/or licence to engage in electricity generation activities at nuclear power plants shall be exempt from value added tax. Taxes borne in connection with deliveries made within this scope shall be deducted from the tax calculated on taxable transactions. Taxes that cannot be offset by way of deduction shall be refunded, pursuant to Article 32, upon the request of the taxpayer carrying out transactions within the scope of the exemption.

(3) Where the investment is not completed, the taxes not collected in due time or refunded under this article shall be collected from the investor together with late payment interest, with a tax loss penalty applied. The limitation period for these taxes and for tax penalties shall begin from the beginning of the calendar year following the date on which the circumstance requiring the assessment of the tax or the imposition of the penalty occurs.

(4) The President of the Republic is authorised to extend the periods specified in the first and second paragraphs until 31/12/2050; the Ministry of Treasury and Finance is authorised to determine the procedures and principles relating to the implementation of this article.

Entry into force:

The provisions of this Law granting authority to the Council of Ministers and to the Ministry of Finance and Customs shall enter into force on the date of its publication, and its other provisions on 1/1/1985.

Execution:

The provisions of this Law shall be executed by the Council of Ministers.

PROVISIONS THAT COULD NOT BE INCORPORATED INTO

THE PRINCIPAL LAW No. 3065 OF 25/10/1984:

1 – Provisional article of Law No. 3099 of 6/12/1984:

Provisional Article – The provision of subparagraph (c) of paragraph 3 of Article 17 of the Value Added Tax Law shall cease to have effect on 31/12/1985, and the provision of subparagraph (ı) of paragraph 4 thereof on 31/12/1988.

2 – Provisional articles of Law No. 3297 of 3/6/1986:

The portion of the value added tax on depreciable economic assets acquired after 1/1/1985 that could not be deducted until the date on which this Law enters into force shall be dealt with in accordance with this Law.

Until the conclusion of transactions that were commenced under subparagraph (b) of paragraph 3 of Article 17, as amended by Article 1 of Law No. 3099, of the Value Added Tax Law No. 3065 and that continue after 1/1/1987, the former provisions shall apply to these transactions.

3 – Provisional Article 1 of Law No. 3393 of 19/6/1987:

The provisions of this Law shall also apply to the commercial plate sales made, before the date on which this Law enters into force, by traffic commissions authorised by Council of Ministers Decision in provinces where plate restrictions were applied, and to the amounts distributed to owners of vehicles with commercial plates out of the money obtained from these sales.

4 – Provisional articles of Law No. 3505 of 3/12/1988:

Where taxes not exceeding 500,000 liras in amount for each type of tax, taxation period and tax office, which have fallen due but have not been paid as of the date on which this Law enters into force (including that date), and taxes not exceeding 500,000 liras in amount which have been made subject to dispute as of that date or for which the time limit for filing an action has not yet expired, are paid with a 30% surcharge by the end of 31.12.1988, on condition that no dispute is raised and that any dispute raised is waived, the collection of the late payment surcharge, late payment interest and tax penalties corresponding to these paid taxes shall be waived.

Where 30% of the late payment surcharge, late payment interest and tax penalties not exceeding 500,000 liras in amount for each type of tax, relating to taxes whose principal amounts have been paid in part or in full, for each type of tax, taxation period and tax office, before the date on which this Law enters into force, is paid by the end of 31.12.1988, the collection of the remaining 70% shall be waived.

The procedures and principles relating to the implementation of this article shall be determined by the Ministry of Finance and Customs.

TABLE OF AMENDMENTS MADE BY VARIOUS LEGISLATION TO THE RATES AND AMOUNTS

IN VARIOUS ARTICLES OF LAW No. 3065

Amending

Decree/Communiqué

Official Gazette in which Published

Number of Amended Article

Date

Number

Date

Number

24/12/1984

84/8887

28/12/1984

18619

28

24/12/1984

84/8888

28/12/1984

18619

60

24/12/1984

84/8889

28/12/1984

18619

14

3/1/1985

85/8924

5/1/1985

18626

28

13/2/1985

85/9114

21/2/1985

18673

28

4/3/1985

85/9204

9/3/1985

18689

60

24/6/1985

85/9598

28/6/1985

18795

28

14/8/1985

85/9771

25/8/1985

18853

28

29/4/1986

86/10626

6/5/1986

19099

28

22/8/1986

86/10925

24/8/1986

19201

28

24/11/1986

86/11217

29/11/1986

19296 Repeated

28

5/2/1987

87/114821

7/2/1987

19375

28

1/9/1987

87/12068

16/9/1987

19854 Repeated

28

30/12/1987

87/12469

31/12/1987

19576

28

25/6/1988

88/13036

26/6/1988

19681 Repeated

28

13/10/1988

88/13383

15/10/1988

19960

28

22/12/1988

88/13601

30/12/1988

20035

28

23/6/1989

89/14255

2/7/1989

20213

28

27/12/1989

89/14916

30/12/1989

20388

28

28/7/1991

91/2031

1/8/1991

20947

28

12/8/1991

91/2069

16/8/1991

20962

28

27/12/1991

91/2545

1/12/1991

21098

28

17/5/1991

91/1855

31/5/1991

20887

28

10/2/1992

92/2692

29/2/1992

21157

28

17/9/1992

92/35051

2/11/1992

21403

28

22/12/1992

92/3896

31/12/1992

21452

28

13/5/1993

93/4406

6/5/1993

21583

28

27/10/1993

93/4932

30/10/1993

21743

28

11/3/1994

94/5350

5/4/1994

21896

28

4/4/1994

94/5454

13/4/1994

21904

28

24/6/1994

94/5730

27/6/1994

21973 Repeated

28

26/12/1994

94/6432

1/2/1995

22189

60

12/1/1995

95/6431

6/2/1995

22194

28

4/8/1995

95/71763

1/8/1995

22390

28

20/7/1995

95/71393

1/8/1995

22390

60

21/12/1995

95/7612

30/12/1995

22509

28

21/12/1995

95/7613

30/12/1995

22509

60

27/12/1997

97/10465

2/1/1998

23218

28

3/4/1998

8/10884

16/4/1998

23315

28

23/6/1998

8/11328

9/7/1998

23397

28

10/8/1998

98/11467

13/8/1998

23432 Repeated

28

1/3/1999

99/12519

23/3/1999

23648

28

27/11/1999

99/13648

2/12/1999

23894 Repeated

28

27/11/1999

99/13649

2/12/1999

23894 Repeated

60

Communiqué

73

21/1/2000

23940

28

12/9/2000

2000/1221

22/9/2000

24178

28

30/11/2000

2000/1693

11/12/2000

24257

28

7/5/2001

2001/2344

10/5/2001

24398

28

30/7/2001

2001/2789

2/8/2001

24481

28

17/7/2002

2002/4480

30/7/2002

24831

28

25/4/2003

2003/5557

22/5/2003

25115

28

27/12/2004

2004/8301

29/12/2004

25685

28

24/12/2007

2007/13033

30/12/2007

26742

28

13/3/2009

2009/14802

16/3/2009

27171

28

25/3/2009

2009/14812

29/3/2009

27184

28

6/4/2009

2009/14881

14/4/2009

27200

28

12/6/2009

2009/15081

16/6/2009

27260 Repeated

28

19/8/2009

2009/15315

22/8/2009

27327

28

27/8/2012

2012/3594

12/9/2012

28409

28

31/1/2017

2017/9759

3/2/2017

29968

28, 29