VAT collected on the building & construction expenses made for Strategic Investments will be rebated provided that the fixed investment amount is over 500 million TL. 

VAT Refund Example

Supposing that an investment with a total investment amount of 500,000,000 TL supported within the scope of the Strategic Investment Incentive Scheme allocates 20% of the total amount to building/construction expenses, the total building/construction expenses would be 100,000,000 TL.  

VAT Refund Amount     = (Building/Construction Expenses) x (VAT Rate for Building/Construction Expenses)
                                        = 100,000,000 TL x 0,18
                                        = 18,000,000 TL

* The VAT rate applicable to building/construction expenses is 18%.