“When making an investment, every penny counts. On this journey you’ve embarked on with great excitement, reducing costs and using your capital in the most efficient way are among the most critical factors for the success of your project. It is at this very point that two giant advantages offered by the Investment Incentive Certificate come into play: VAT Exemption and Customs Duty Exemption! 🚀

So, what do these incentives mean in practice, and how does the process work? The smallest mistake in this process could cause you to lose these huge advantages.

🏭 VAT Exemption: Reduce Your Investment Costs Directly!

As an investor holding an Investment Incentive Certificate, you do not pay Value Added Tax (VAT) for the new machinery and equipment you will purchase for your project. This rate, which can be as high as 20%, means incredible savings, especially in investments with high machinery costs.

So, how does the process work?

1. The Approved List is Essential: To benefit from this exemption, it is mandatory that the machinery and equipment you will purchase are included in the “Domestic Machinery and Equipment List” or the “Imported Machinery and Equipment List” approved by the Ministry of Industry and Technology.
2. Presentation to the Seller: During the purchase, you need to present your Investment Incentive Certificate and a letter stating that the relevant machine is on the attached list of the certificate to the seller company.
3. Notation on the Invoice: Based on these documents, the seller issues the invoice with the note “Exempt from VAT under Article 13/d of the VAT Law No. 3065” and does not collect VAT from you.

These simple steps ensure that tens of thousands, or even millions, of liras stay in your pocket right at the beginning of your investment.

🚢 Customs Duty Exemption: Eliminate the Borders!

If you need to bring the machinery or equipment required for your investment from abroad, the Customs Duty Exemption will be your greatest supporter. Thanks to this exemption, you are completely exempt from paying customs duty and additional customs duty for the products you import.

How is this advantage used in the import process?

1. The Approved List, Again: Just as with the VAT exemption, it is mandatory for the imported machine to be on the “Imported Machinery and Equipment List” attached to your Investment Incentive Certificate.
2. Application to the Customs Administration: During the import transaction, an application is made to the relevant customs administration through your customs broker with your Investment Incentive Certificate and its attached lists.
3. Single Window System: The customs administration checks the conformity of your certificate and the imported product through the Single Window System and approves your import transaction by zeroing out the tax liabilities.

This way, you can bring the most modern technology from international markets to your facility without additional costs.

🔍 The Key Point: Technical Suitability and Certificate Conformity Audits

No matter how attractive the VAT Exemption and Customs Duty Exemption are, at the core of these processes lies flawless compliance and auditing. Each piece of machinery purchased or imported must match the technical specifications on the list submitted to and approved by the Ministry. This is the most sensitive and critical stage of the investment process.

Why is this so important?

• Incorrect Purchase: Purchasing a machine that is not on the list or has different technical specifications can lead to the invalidation of the exemptions and immunities.
• Penalties: If an irregular purchase is detected during audits, the VAT and customs duties that were not collected in time are demanded back from you, along with late payment interest and penalties. This situation can completely disrupt the financial balance of your project.
• Process Management Difficulty: Tracking a machinery list that can consist of hundreds of items, and checking the technical details and invoice conformity of each purchase, is a complex operation that prevents the investor from focusing on their main business.

It is at this point that the principle “Atlas Nestor meticulously audits the technical suitability and certificate conformity of every purchase under the certificate” becomes vitally important. Professional consultancy firms like Atlas Nestor undertake this critical auditing task on behalf of the investor:

✅ Technical Suitability Check: They confirm that all specifications (model, capacity, power, etc.) in the proforma invoice or technical documents of the machine to be purchased match the information on the incentive certificate list one-to-one.

✅ Certificate Conformity Audit: They check that each purchase is made within the validity period of the incentive certificate, documented with the correct invoice notations, and complies with legal procedures.

✅ Risk Shield: By identifying a potential mistake or non-conformity before the purchase is even made, they protect the investor from a major financial risk and bureaucratic burden.

In short, a professional audit mechanism not only allows you to benefit from the VAT and Customs Duty advantages but also guarantees that you manage this process safely and smoothly.

While strengthening your investment with government supports, make sure that every step you take is solid and compliant with the rules. Remember, with the right strategy and expert auditing, VAT Exemption and Customs Duty Exemption will be one of your greatest assets in achieving your investment’s success. ✨