Value Added Tax (VAT) Exemption

Investment machinery and equipment imported and/or locally provided within the scope of the incentive certificate will be VAT exempt.

VAT Exemption Example

If the project is VAT exempt, an investor purchasing local machinery and equipment worth of 10,000,000 TL or imported machinery and equipment worth of 20,000,000 TL, including VAT, will have a saving around 5,400,000 TL.  
VAT Exemption Amount =  (Total Amount spent for Machinery and Equipment) x (VAT Rate*)
                 = 30,000,000 TL x 0.18
                 = 5,400,000 TL** 

* 18% VAT rate is applicable to investment machinery and equipment provided within the scope of Investment Incentive Certificate, excluding certain cases stipulated in the VAT Law.
** For operating companies which can offset paid VAT with collected VAT, net contribution of this support is the time value of money.