VAT chaos challenges yacht production
SLEEP It was learned that although producers are exempt from Value Added Tax (VAT), different practices are implemented in some tax offices. The exception, which has been recognized for years although no legislative change has been made, victimized the sector due to the statement “the exception cannot be applied” in the letter from the Istanbul Tax Office of the Revenue Administration on 25 April 2023. While yacht manufacturers can obtain a VAT exemption certificate at some tax addresses, some addresses claim that they cannot benefit from the exemption, citing the letter from the Istanbul Tax Office as justification.
Industry representatives point out that Turkey is among the top three producing countries in the world after the Netherlands and Italy, and that the issue of VAT exemption causes an increase in labor and other costs, placing the industry in a difficult situation.
DISTURBING THE COMPETITIVE ENVIRONMENT
The yacht manufacturers, who stated that although it is a sector that encourages production, this problem alters the competitive environment, they pay the tax when they import; They demand that this problem be resolved by stating that they also pay taxes on the full cost of the goods, such as transportation, customs duties and stamp duty.
AGAINST THE LEGISLATION
TAX experts affirm that boats up to 24 meters in length, which have an operating certificate from the Ministry of Tourism, are not boats used for water sports, and that all vehicles that cannot benefit from the exemption are vehicles used for water sports, and point out that There is no limitation or classification such as 24 meters in the VAT exemption for yachts in any of the relevant regulations. Experts highlight that the opinion letter from the Istanbul Tax Office, which changed the practice, is clearly contrary to the examples contained in the law, notifications and regulations.
Source: Sozcu

Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.