VAT REFUND

Who is eligible for a VAT refund?

Foreign producers who have no registered residence, office, legal or business address in Türkiye (natural or legal persons who are not engaged in any work in  Türkiye that incurs a VAT, income or corporate tax liability) are eligible to benefit from the VAT incentives offered.

Refund application date

Applications for a VAT refund should be made after the expiry of the filming permit obtained from the Ministry of Culture and Tourism and the completion of filming.

Scope of the VAT refund

The VAT refund involves film production-related products and services procured or imported by foreign film producers while the filming permit obtained from the Ministry of Culture and Tourism is valid.

Application procedure

Applications are made by submitting a petition and a sworn-in public accountant’s report to a designated tax office.

Designated tax offices for VAT refund applications

Ankara Directorate of Tax Administration, Başkent Tax Office

İstanbul Directorate of Tax Administration, Beyoğlu Tax Office

İzmir Directorate of Tax Administration, Konak Tax Office

Upper limit for VAT returns

There are no upper limits for VAT returns.

Important aspects for the sworn-in public accountant’s report

The report must include in detail all information submitted/to be submitted to the Ministry of Finance, as well as all permits obtained, including the stages of the relevant works.

The reports must include all the invoices and other supporting documentation for goods and service procurements and imports subject to the VAT return application, as well as a list of customs receipts.

Note: If these services will be carried out by contractors, the report must also include supporting documents for the procurement and import of goods and services by these contractors.

The report must prove that the procurement of goods and services subject to VAT is relevant to the production, accompanied by valid documentation.

Both the sworn-in public accountants and the foreign producers are individually and jointly responsible for the accuracy of the information contained in the report, as well as any penalties that may be imposed in case of an unlawful tax return.

Outcome of the VAT return application

The return will be carried out by the tax office within 30 days of the submission of the complete sworn-in public accountant’s report.