In Article 27/1 of the VAT Law, in cases where there is no or unknown price and the price is other than money such as goods, benefits, services, the tax base is the comparable price or comparable fee according to the nature of the transaction, and in Article 27/2, it is stated that in cases where the price is clearly lower than the comparable price or comparable fee and this low price cannot be explained by the taxpayer with a justified reason, the comparable price or comparable fee will be taken as the tax base.
In the build-operate-transfer model within the scope of Law No. 3996, no direct price is paid to the operator by the relevant institution in return for the transfer of the facility to itself at the end of the term. In this model, which is a type of financing, the operator covers the price related to the transfer of the facility with the profit it obtains by operating the facility within the period stipulated in the contract.
Within this framework, in the build-operate-transfer model, VAT will not be sought on the comparable price when the operator delivers the facility to the relevant institution at the end of the term.
Source: VALUE ADDED TAX CIRCULAR/60
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