Building Inspection Services in Türkiye
In section (3.2.6) of the VAT General Communiqué No. 117, it is stated that VAT withholding will be applied to the recipients at a rate of 9/10 in building inspection services provided to those listed in section (3.1.2) of the Communiqué.
The scope of withholding is the building inspection services provided by building inspection companies. Water structures inspection services and similar services will also be evaluated within this scope.
In case the price is paid through public institutions in building inspection services provided to those who are held responsible for withholding, withholding will be applied by the person who purchased the service and in whose name the building inspection service invoice is issued. Since the prices related to building inspection services that are not purchased by public institutions themselves are paid from accounts opened in their name, VAT withholding is not possible as a responsible party.
In construction works in return for land, although the service fee is paid by the contractor, since the invoice for the construction inspection service is issued in the name of the construction license holder (land owner) in accordance with the relevant legislation, action will be taken according to the liability status of the construction license holder. If the license holder is within the scope of section (3.1.2) of the Communiqué, a transaction will be established within the scope of the withholding application.
Source: VALUE ADDED TAX CIRCULAR/60
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