What should companies do if they deal with a business not included in the articles of association? (In Turkey)
One of our logistics companies wants to buy about 10 passenger cars and rent them with a contract. The articles of association of the company does not include car rental and operation. The main issue here is whether the VAT of vehicles can be deducted or not. If the board of partners decides and notifies the tax office that the company will deal with renting cars by notarization, can the company deduct the VAT?
If the company will deal with renting the cars, it must make changes in its articles of association.
Tax Office must be informed about this change. After that, the VAT can be deducted for the cars which are purchased.
Source: İSMMMO
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