VAT exemption for houses donated to disaster victims

Within the scope of the protocol signed with the Disaster and Emergency Management Presidency in the provinces affected by the February 6 earthquake, deliveries and services made to professional organizations qualified as public institutions due to the construction of houses to be donated to disaster victims will be exempt from value added tax until December 31, 2024. The legal regulation regarding the VAT exemption to be provided to those who donate houses to disaster victims, prepared by the Revenue Administration of the Ministry of Treasury and Finance, was published in the Official Gazette and entered into force. Accordingly, in places accepted as disaster areas after the earthquakes that occurred on February 6, within the scope of the protocol signed with the Disaster and Emergency Management Presidency, deliveries and services made to professional organizations qualified as public institutions due to the construction of houses to be donated to disaster victims will be exempt from value added tax until December 31, 2024. Taxes incurred due to deliveries and services made within this scope will be deducted from the tax calculated on taxable transactions. Taxes that cannot be compensated through deductions will be refunded upon the request of the taxpayer who performs an exemption transaction in accordance with the provision of Article 32 of the law. The President is authorized to extend the period specified in the first paragraph up to one year; the Ministry of Treasury and Finance is authorized to define deliveries and services that will be included in the exemption scope and to determine the procedures and principles regarding exemptions and refunds. Workplaces, factories, shopping malls, mosques, schools, hospitals and social facilities are exempt. The exemption scope includes deliveries and services made to professional organizations with the status of public institutions due to the construction of houses to be donated to disaster victims within the scope of the protocol signed with the Disaster and Emergency Management Presidency (AFAD) in places accepted as disaster areas. According to the practice, purchases of goods and services related to the construction of structures that are not residential (such as workplaces, factories, shopping malls, mosques, parks, schools, hospitals, social facilities) and the renovation, maintenance and repair of existing houses will not be included in the exemption scope. According to the practice, where a protocol will be signed with AFAD, professional organizations with the status of public institutions must sign a donation protocol with AFAD in order to benefit from the exemption. The exemption will cover purchases of goods and services for the construction of housing. Infrastructure works related to the construction of housing units located together, roads within the site, retaining walls, curtain walls, perimeter walls and similar goods and services will be evaluated within the scope of the exemption. Purchases of goods and services related to the construction of children's playgrounds, landscaping, pools, pergolas, pergolas, sports areas and similar will not be evaluated within the scope of the exemption. In addition, kitchen cabinets that are integral to the housing units, bathroom cabinets and cloakrooms that cannot be dismantled and moved by the owners of the housing, panel radiators, combi boilers, shower cabins, bathtubs and similar items will be included within the scope of the exemption. Furniture, white goods, curtains, chandeliers, televisions and similar items will not be evaluated within the scope of the exemption. It will not be possible to apply exemption within the scope of this article for purchases of goods and services related to housing units built by AFAD using donations made in cash to AFAD. Professional organizations with the status of public institutions will benefit from the exemption in question regardless of whether they are VAT payers or not.