VAT exemption for houses to be donated to earthquake victims

The Revenue Administration announced that VAT exemption covers the deliveries and services made to professional organizations in the nature of public institutions due to the construction of houses to be donated to the disaster victims.

The Revenue Administration detailed the VAT exemption application in the grant houses to be built by professional organizations in the earthquake zone.

According to the communiqué amending the VAT general application communiqué and published in the current issue of the Official Gazette, VAT exemption; It covers the deliveries and services to professional organizations in the nature of public institutions due to the construction of houses to be donated to disaster victims.

The construction of non-residential structures such as workplaces, factories, shopping centers, mosques, parks, schools, hospitals, social facilities, and purchases of goods and services for the modification, maintenance and repair of existing residences will not be considered within the scope of the exception.

DONATION PROTOCOL WITH AFAD WILL BE MANDATORY

Professional organizations will have to sign a donation protocol with AFAD in order to benefit from the exception.

The exception will apply to deliveries and services to organizations until 31 December 2024.

The donation of the houses built after this date will not affect the exception application. These organizations will benefit from the exemption regardless of whether they are VAT payers or not.

Refund requests arising from VAT exemption transactions will be fulfilled without a tax inspection report, CPA report and collateral, regardless of the amount of cash refund requests not exceeding 10 thousand TL, provided that the necessary documents determined in the communiqué are submitted.

If the cash refund request exceeds this amount, the refund of the excess amount will be fulfilled according to the tax inspection report or CPA report. (REUTERS)

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