What will be the status of the corporations in terms of VAT, in the event of sale of the real estate registered in its asset for more than two years?
Pursuant to Article (17/4-r) of the Law No. 3065, handovers carried out by the sale of the shares of subsidiaries and the immovables which are in the assets of the corporation for at least two full years shall be exempted from VAT, in Turkey.
In order to be exempted from the sale of immovables (land, real property, buildings) to be sold and shares of subsidiaries, 2 full years (730 days) must have been registered in the corporation’s assets.
Exemption clause shall not be applied in the delivery of immovables in the assets of corporations, which trade assets within the scope of exception (trading or renting of immovables customarily).
Source: Revenue Administration
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