ARE REAL ESTATES THAT IN POSSESSION OF COMPANY’S ASSETS MORE THAN 2 YEARS SUBJECT TO VAT IN TURKEY?
According to article 17/4-r of VATA, the handover process of real estates, which have been in possession of company’s assets or municipalities or provincial special administrations at least for 2 years, are exempt from VAT.
With regard to that law, the handover process of immovable (premises, terrain, structure), which have been in possession of company’s assets or municipalities or provincial special administrations at least for 2 years, are also exempt from VAT. If these properties are sold at an auction, there will be exceptions.
Nevertheless, exception clauses are not within the scope of institutions that buy and sell these properties because of commercial reasons. Municipalities and provincial special administrations that buy and sell these properties because of commercial reasons cannot take an advantage of those exceptions.
Source: Value Added Tax Act
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
