The Court of Tax Appeals (Danıştay) issued decision 2025/19, 2025/21 on 12 Feb 2026 clarifying that real‑estate sales by corporate taxpayers held for at least two full years in their books are exempt from VAT, even when sold at auction. The ruling resolves a dispute between Konya and Istanbul regional courts and extends the exemption to auction sales.
The decision confirms that real estate sales by corporate taxpayers that have been held for at least two full years in their books are exempt from VAT, even when sold at auction, effective 12 February 2026.
The exemption applies only to corporate taxpayers; individual taxpayers are not covered by this ruling.
A property must have been held for at least two full years in the corporate taxpayer's books to qualify for the exemption.
Yes, the decision explicitly states that auction sales are covered by the VAT exemption, resolving the previous dispute between regional courts.
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