Within the scope of Inward Processing and Temporary Acceptance Regime, the Deferment-Acceptance Application Period According to Article 11/1-c of VAT has expired
The provision in Temporary Article 17 of the VAT Law, which authorizes the President to defer and credit (tecil-terkin) the tax calculated on the delivery of materials to be used in the production of goods to be exported under the inward processing and temporary admission regimes, rather than paying it, expired on December 31, 2025.
As it currently stands, temporary article 17 of the VAT Law is as follows.
The President is authorized to grant permits, by regions, sectors, or commodity groups, for the delivery of goods to be used in the production of goods to be exported under the inward processing and temporary admission regimes until December 31, 2025, in accordance with subparagraph (c) of paragraph 1 of Article 11 of the Value Added Tax Law. For the purposes of this article, the periods stipulated in these regimes shall be taken as the export period instead of the period mentioned in the said subparagraph. If the export is not carried out in accordance with the conditions, the tax that was not collected in due time shall be collected from the buyer along with the delay interest and a tax evasion penalty.
The duration of the regulation has been extended until 12/31/2025 by Law No. 7256. However, no extension has been made for the year 2026 so far. Accordingly, the period for the deferral-exemption (tecil-terkin) application for the domestic purchase of raw and auxiliary materials to be exported within the scope of the Encouragement Certificate of Investment (DİİB) has ended on December 31, 2025.
If no new regulation is made, the deferral-exemption (tecil-terkin) practice cannot be applied to the domestic purchases of raw and auxiliary materials to be used in the manufacturing of goods to be exported, and the calculated VAT will have to be paid.
Sincerely
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