VALUE-ADDED TAX DEDUCTION FOR PASSENGER CARS IN TURKEY AND THE EUROPEAN UNION’S APPROACH

Abstract

VAT Law has imposed certain restrictions on VAT deduction. One of suchrestrictions pertain to VAT deduction concerning passenger cars. As per thesaid restriction, VAT expressed in purchase documents of passenger cars ownedby enterprises, save for passenger cars used by enterprises that fully or partiallyoperate in renting and various other utilisation of passenger cars, cannot bededucted from VAT calculated on the taxpayer’s operations subject to taxation.This restriction stipulated by the VAT Law constitutes a breach of the VATrationale, which is indeed based on a deduction mechanism.On the other hand, in the European Union, entire VAT amounts for goodsand services purchased by taxpayers in the context of their business operationscan be subject to deduction. According to the EU approach, the taxpayer’suse of the passenger car in business operations and the lack of any motive forpersonal use in acquisition of such passenger cars are considered to be pretextssufficient to allow VAT deduction.

Özet

KDVK, KDV’de indirimine bazı sınırlamalar getirmiştir. Bu sınırlandırmalardan

Keywords: Katma Değer Vergisi, Katma Değer Vergisinde İndirim, Avrupa Birliği, Binek Otomobil, Uyumlaştırma