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VAT Exemption in Construction Donations – Purchases Made by Paying VAT

Yayınlayan: Sefa KATIRCI
Kategori: English, Financial Consultancy
Paying VAT - VAT Exemption - Guven CPA
Purchases Made by Paying Vat – VAT Exemption – Guven CPA


  • It is also possible to purchase goods and services within the scope of VAT Exemption by paying VAT.
  • In this case, the VAT paid for the goods and services received shall be returned to the donors.
  • However, the company which has a donation and exemption certificate also loses the right to purchase goods and services in other purchases without paying VAT from the VAT Exemption. This does not invalidate the Exemption Certificate. However, the donor company cannot move from one method to another. The donor, in all purchases, should either pay VAT or not.
  • All donors’ goods and services must be either VAT-free or VAT refunded.
  • It is not possible to make some payments without VAT and the other part by paying VAT.
  • In order to make a VAT refund, it is also necessary to provide the list of exceptions (except for the list of goods deliveries and services).
  • The exemption certificate attachment list is given in the form of an annex to the donors and no other vat exceptions are issued for them.
1.1. Entry of Goods and Services into the System
  • Donors will enter the system in accordance with the project. They should specify the date, number, goods or amount of the purchase invoice to the relevant goods or services section of the donation list.
  • Other issues is the same as the items in the title of 3.1 Entry of Goods and Services into the System.
1.2. Application
  • If the donor has VAT liability, the taxes levied due to these transactions are deducted.
  • If they cannot be compensated by discount, the subject of return can be made.
  • If the donors are not subject to VAT, the VAT paid due to the goods and services shall be returned. It can be done by applying to the tax office by the place where the donated facility is located.
  • The notifications specified in the title of 1.1. Renewal of Exception Certificate shall not be refunded within the scope of exemption unless it is done by the related administration and organizations.