Turkey: Amendments to VAT guidance; changes to special consumption tax on petroleum products, adapted vehicles
Clarifications to VAT exemptions for defense industry projects, vehicle deliveries for defense and security purposes, and public real estate transactions
The Ministry of Treasury and Finance issued General Communiqué No. 55 amending the Value Added Tax (VAT) General Implementation Communiqué to align practice with amendments introduced by Law No. 7555 of July 20, 2025. The communiqué clarifies VAT exemptions for defense industry projects, vehicle deliveries for defense and security purposes, and public real estate transactions, as well as VAT base calculations for imports and refund procedures.
In addition, the government on July 3, 2025, increased the fixed amounts of special consumption tax on petroleum products by 15.71%, in line with article 12(5) of the SCT Law, due to a similar rise in the domestic producer price index. The new rates apply to various petroleum products, including unleaded gasoline, diesel fuel, marine fuel, fuel oil, natural gas, LPG, and motor oils.
Finally, the Constitutional Court annulled effective June 26, 2025, the personal-use condition in article 7(1)(2)(c) of the Special Consumption Tax Law that limited tax exemptions to disabled individuals who could drive adapted vehicles. The court found this condition violated constitutional principles of social protection and equality, as it discriminated against those unable to drive.
For further information, please contact a KPMG tax professional in Turkey:
Volkan Gök | vgok@kpmg.com
Yavuz Öner | yoner@kpmg.com
Hakan Uçak| hucak@kpmg.com