Numara : 6
Tarih : 1.6.2018

TAX NEWS NO: 2018/6

June 1, 2018

Subject: VAT exemption and depreciation calculation of newly acquired machinery and equipment.

The Law Requiring Amendments to Tax Laws, Certain Laws and Statutory Decrees numbered 7103 has been published in the second repetitive Official Gazette dated 27 March 2018.

This Tax Bulletin summarizes the relevant Law’s regulations concerning the VAT exemption and depreciation calculation of newly acquired machinery and equipment.

According to the regulations of the Law no.7103;

  • The purchase of new machinery or equipment by VAT taxpayers with industrial registry certificate exclusively to be used in manufacturing industry, technology development sites and activities in R&D-design centers (within the scope of the Law numbered 4691, 5746 and 6550) is exempt from VAT from 1 May 2018 until 31 December 2019.
  • The depreciation of new machinery and equipment (mentioned above) acquired by the VAT taxpayers will be calculated based on half of the useful lives of relevant assets stated as per the Tax Procedural Law.

In addition, with the Decree of The Council of Ministers No. 2018/11674 dated 5/5/2018 list of machinery and equipment which will benefit from VAT exemption and favourable depreciation rates have been determined.

Please see the list of Machinery and Equipment below;

Machinery and Equipment List (Excel)

Yours sincerely,

Deloitte Turkey

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