Import Protection and Surveillance Implementation VAT Reduction Decision Changed
With the Presidential Decree No. 7846 published in the Official Gazette dated 24.11.2023 and numbered 32379;
– Pursuant to the relevant legislation on the implementation of surveillance in imports, the right to deduct the value added tax paid due to the amounts declared in the customs declarations regarding the goods subject to surveillance practice and which could not be certified and all kinds of taxes, duties, fees and shares arising from these amounts and included in the value added tax base were removed.
– The right to deduct customs duties and/or additional financial obligations imposed as safeguard measures in accordance with the relevant legislation on the application of safeguard measures on imports, anti-dumping duties and countervailing duties imposed within the scope of the relevant legislation on the prevention of unfair competition in imports, and the right to deduct the value added tax paid due to all kinds of taxes, duties, fees and shares arising from these amounts and included in the value added tax base were also abolished (Our Circular No. 27.11.2023/95).
With the Presidential Decree No. 8000 published in the Official Gazette dated 28.12.2023 and numbered 32413 regarding the aforementioned regulation, the provisions of the aforementioned Decree will not be applied if the costs related to the import of goods subject to surveillance and safeguard measures are paid through the banking system before 24.11.2023 and these goods are imported until 01.04.2024 at the latest (including this date).
27.11.2023/95 numbered Circular stated that while it was possible to deduct VATs paid within the scope of protection and surveillance practices before, it is no longer possible to deduct VATs to be paid within this scope. However, according to the last Presidential Decree on the subject,
- The amounts related to the import of goods subject to surveillance and safeguard measures must have been paid through the banking system before 24.11.2023,
- Import of these goods until 01.04.2024 at the latest (including this date)
in the event that the VATs within the scope of protection and surveillance practices will be deductible.
Except for these conditions, the VATs in question are not deductible.
The relevant Presidential Decree is available here.
Sincerely,
BİLGENER
