Manufacturers in the yacht sector, where Turkey ranks among the top 3 in the world, stated that they were in a difficult situation due to the ‘tax exemption’ problem and the competitive environment was deteriorated.
Release: 05:30 – 03 November 2023 Updated:
SLEEP It was learned that while producers are exempt from Value Added Tax (VAT), different practices are implemented in some tax directorates. The exception, which has been recognized for years even though no legislative change has been made, victimized the sector due to the statement ‘exception cannot be applied’ in the letter of the Revenue Administration Istanbul Tax Office dated April 25, 2023. While yacht manufacturers can obtain an exemption certificate for VAT exemption in some tax directorates, some directorates state that they cannot benefit from the exemption, citing the letter of the Istanbul Tax Office as a justification.
Industry representatives point out that Turkey is among the top 3 producing countries in the world after the Netherlands and Italy, and that the VAT exemption problem causes labor costs and other costs to increase, which puts the industry in a difficult situation.
IT DISTURBES THE COMPETITIVE ENVIRONMENT
Yacht manufacturers, who stated that while it is a sector that encourages production, this problem disrupts the competitive environment, they pay the tax when they import; They demand that this problem be resolved by stating that they also pay taxes for the total cost of the goods, such as transportation, customs duty and stamp stamps.
AGAINST THE LEGISLATION
TAX experts state that boats up to 24 meters long, which have an operating certificate from the Ministry of Tourism, are not boats used in water sports, and that all vehicles that cannot benefit from the exemption are vehicles used in water sports, and note that there is no limitation or clification such as 24 meters in the VAT exemption for yachts in any of the relevant regulations. is pulling. Experts emphasize that the opinion letter of the Istanbul Tax Office, which changed the practice, is clearly contrary to the examples contained in the law, notifications and regulations.