Value Added Tax (VAT) Exemption on Cars

Details and informartion on acquiring vehicles VAT-free for eligible buyers.

Value Added Tax (VAT) is typically applied to vehicle purchases at a standard rate of 18%. However, certain individuals and entities may qualify for VAT exemptions when acquiring vehicles.

Eligibility for VAT Exemption:

• Foreign Diplomats and Consular Officers: Diplomatic personnel are eligible to purchase vehicles without paying VAT and Special Consumption Tax (SCT).
• Banks and Insurance Companies: Entities such as banks and insurance companies, which are generally exempt from VAT, are subject to a Banking and Insurance Transactions Tax (BITT) at a rate of 5% on their transactions.

Consultation Services:
Given the complexities of VAT exemptions, it is advisable to seek consultation from legal experts or firms specializing in Turkish tax law. They can provide tailored advice on eligibility criteria, required documentation, and the application process to ensure compliance with Turkish regulations.