Are Real Estates That in possession of Company’s Assets More Than 2 Years Subject to VAT in Turkey?

11.08.2017

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