Amendment to the VAT General Application Communiqué (Serial No. 58)
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This communiqué updates Turkey’s VAT application rules for certain foundations, foundation-linked institutions, and donation-related exemptions. It expands some references from the Turkish Religious Foundation to also include foundations managed and represented by the General Directorate of Foundations, and updates old references to the Council of Ministers with the President. The most practical change is for higher education institutions founded by tax-exempt foundations. From 1 January 2027, supplies and services provided by hospitals, clinics, laboratories, parks, gardens, blood banks, organ transplant banks and similar facilities operated by those institutions will be subject to VAT under the normal rules. The VAT exemption will continue only where those facilities are operated directly by the tax-exempt foundation itself. The communiqué also adds Darülaceze to donation-related VAT exemption provisions.
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Key Changes
- Expands certain VAT rule references from the Turkish Religious Foundation to include foundations managed and represented by the General Directorate of Foundations.
- From 1 January 2027, facilities operated by higher education institutions founded by tax-exempt foundations will generally be subject to VAT.
- Keeps the VAT exemption where the relevant facilities are operated directly by the tax-exempt foundation itself.
+ 2 more changes with Pro
Obligations
What this law requires
From 1 January 2027, hospitals, convalescent homes, clinics, dispensaries, preventoria, sanatoria, blood banks, organ transplant banks, monuments, botanical and zoological gardens, parks, and veterinary, bacteriology, serology and distofajin laboratories operated by higher education institutions founded by foundations granted tax exemption by the President must charge VAT on their supplies and services under the general VAT rules.
Tax-exempt foundations granted exemption by the President may continue applying the VAT exemption only when the listed healthcare, laboratory, blood bank, organ transplant, park, garden, monument, botanical, zoological or similar facilities are operated directly by the foundation itself.
Donation-related VAT exemption provisions must be applied to qualifying donations made to Darülaceze in the same manner as to the other listed eligible recipient institutions.
VAT exemption provisions concerning properties owned by the Turkish Religious Foundation must also be applied where the property is owned by foundations managed and represented by the General Directorate of Foundations, if the other exemption conditions are met.