VAT exemption for homes donated to earthquake victims

The Revenue Administration detailed the request for VAT exemption in the subsidized houses that will be built by professional organizations with the character of public institutions in the earthquake zone.

According to the statement that modifies the statement of general application of VAT and published in this Official Gazette, VAT exemption; Covers deliveries and services to professional organizations of the nature of public institutions for the construction of houses to be donated to disaster victims.

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

THE DONATION PROTOCOL WITH AFAD WILL BE MANDATORY

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

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

The donation of homes built after this date will not affect the application of the exception. 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 dealt with without tax inspection report, CPA report and guarantee, regardless of the amount of cash refund requests not exceeding 10 thousand TL, provided the necessary documents are submitted. determined in the statement.

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