Turkey's New VAT Rules Ease Burdens for Disaster Recovery and Transport Sectors
Turkey has updated its VAT rules with Communique No. 52, which amends the existing VAT General Application Communique. The changes introduce new exemptions and simplify refund procedures for certain transactions. These adjustments aim to ease financial burdens in key sectors, including disaster recovery and transport services.
One of the key changes is a temporary VAT exemption for construction goods and services. Until December 31, 2025, deliveries to nonresident state institutions or organizations in disaster-affected areas will not incur VAT. However, the communique does not specify which institutions qualify for this relief.
Services at airports and ports for air and sea transport vehicles are now VAT-exempt. This exemption does not apply to vehicles used for travel or entertainment purposes. Additionally, sea vessels longer than 24 metres—provided they are not used for cargo transport—are also free from VAT.
The new rules also simplify VAT refunds. Requests under 50,000 Turkish lira no longer require a tax audit report, CPA report, or financial guarantee. Businesses can also deduct VAT paid on imports and delivered goods or services, reducing administrative hurdles.
The amendments under Communique No. 52 streamline tax processes for specific industries and disaster recovery efforts. The temporary exemption for construction in affected areas runs until the end of 2025, while transport-related changes offer long-term relief. These updates are expected to ease compliance and lower costs for qualifying businesses.
