Extension of VAT Exemption for Inward Processing and Temporary Admission Regimes under Turkish Customs Law (Law No. 7573)
Why this matters for foreign exporters and importers trading with Türkiye:
This extension provides long-term legal certainty for non-Turkish exporters, manufacturers and suppliers engaged in export-oriented production linked to Türkiye. It enables:
Predictable cost planning by eliminating VAT exposure on qualifying inputs,
Continued use of Türkiye as a manufacturing and processing hub for re-export,
Reduced cash-flow pressure associated with indirect tax pre-financing.
Foreign companies operating through Turkish inward processing structures should align their supply chains and customs authorisations accordingly to benefit from the extended exemption period.
Executive Summary
Law No. 7573, published in the Official Gazette dated 29 January 2026 (No. 33152), extends the validity of the VAT exemption under Provisional Article 17 of the Turkish VAT Law (No. 3065) until 31 December 2030. The amendment ensures the continued application of VAT exemption for inputs used in export-oriented production under the Inward Processing Regime and Temporary Admission Regime.
Scope of the Amendment
The amendment introduced by Article 5 of Law No. 7573 revises the time limit set out in Provisional Article 17 of the VAT Law:
- Previous deadline: 31 December 2025
- New deadline: 31 December 2030
The VAT exemption continues to apply to the delivery of goods used in the production of export goods under customs procedures such as inward processing and temporary admission.
Practical Customs and Compliance Considerations
- The VAT exemption remains conditional upon proper fulfilment of inward processing or temporary admission obligations.
- Failure to complete export commitments in accordance with customs rules will continue to trigger retroactive VAT collection with penalties and interest.
- Companies should review the validity periods of their customs authorisations and ensure timely closure of customs regimes.
Other legislation updates
- Türkiye – Amendment to Customs General Communiqué No. 16: Clarification on Simplified Procedure for OKSB Holders
- Türkiye – Anti-Dumping Measures Expiring in 2026: Official Notice under Communiqué No. 2026/4
- Türkiye – Amendment to the Free Zones Implementation Regulation: Licensing, Accounting Separation and Superstructure Regime
- Amendment to the Minimum Fee Tariff for Customs Brokers and Authorized Customs Brokers (Türkiye – Regulatory Update)
- Imposition of Definitive Anti-Dumping Measures on Tin-Coated Flat-Rolled Steel Products Originating in Germany, China, Korea, Japan and Serbia