In Article 11/1-b of the VAT Law, an additional subparagraph was introduced by Article 11 of Law No. 5904, stating:
“For cinematographic works approved by the Ministry of Culture and Tourism under Law No. 5224 on the Evaluation, Classification, and Support of Cinema Films dated 14/07/2004, the VAT paid by foreign producers on goods and services exceeding the limit specified in Article 232 of the Tax Procedure Law No. 213, applicable in the relevant year, shall be refunded to the producers.”
Vat Exemption For Foreign Film Producers in Turkey is based on this regulation, ensuring refund rights for eligible foreign production companies.
Based on the authority granted to our Ministry by paragraph (2) of the same article, the procedures and principles regarding the implementation of this exemption have been determined as follows:
1.1. Scope
Foreign producers who do not have a residence, workplace, legal, or business center in Turkey, and who do not engage in any activity requiring income tax, corporate tax, or VAT liability in Turkey, shall benefit from this exemption for the goods and services they purchase or import during the film shooting permit period approved by the Ministry of Culture and Tourism under Law No. 5224 on the Evaluation, Classification, and Support of Cinema Films dated 14/07/2004.
The exemption will be applied by requesting a refund of the VAT paid during the purchase of goods and services or at the time of importation from the tax office. This refund framework is a core part of the Vat Exemption For Foreign Film Producers in Turkey.
1.2. Minimum Amount
If the total amount of the goods and services purchased under this application, excluding VAT, falls below the invoice issuance threshold specified in Article 232 of the Tax Procedure Law No. 213, no transaction will be carried out under this exemption.
1.3. Tax Office to Apply for the Refund
Upon completion of their activities in Turkey, foreign film producers can apply for VAT refunds at one of the following authorized tax offices:
- Ankara Tax Office Directorate – Başkent Tax Office
- Istanbul Tax Office Directorate – Beyoğlu Tax Office
- Izmir Tax Office Directorate – Konak Tax Office
1.4. Refund Request
The refund request must be submitted to the relevant tax office through a petition after the expiration of the film shooting permit obtained from the Ministry of Culture and Tourism. Refund requests will only be processed through a Certified Public Accountant (YMM) report. There will be no upper limit for the refund in these reports.
The report must include:
- All information and permits submitted to the Ministry of Culture and Tourism under the Regulation on Cinematographic Co-productions and Commercial Film Production in Turkey by Domestic and Foreign Producers,
- A detailed explanation of the transaction phases,
- A list of invoices and similar documents related to the purchase of goods and services and importation subject to VAT refund, including customs receipts.
If these services are provided by supplier companies, the report must also include a list of the documents related to the purchases of goods and services and imports made by these companies under this scope.
Certified Public Accountants (YMMs) are required to confirm that the purchases made by foreign film producers, for which VAT was paid, are related to the specific film production and that the documents reflect actual transactions using all necessary examination techniques.
If an unjustified tax refund occurs, the YMMs will be jointly and severally liable with the foreign producer for any lost taxes and penalties imposed.
The tax office will process the refund request within 30 days following the complete submission of the YMM report, in accordance with the principles outlined in Section 84 of the VAT General Communiqué.
Vat Refund/Exemption For Foreign Film Producers
The Turkish Tax Office provides VAT exemption for foreign film producers.
The exemption can be explained as follows: Foreign film production companies can receive a refund after completing the film export process.
The refund process is carried out by designated tax offices in Istanbul, Ankara, and Izmir.
Foreign film producers must submit a refund request through a petition to the relevant tax office after the expiration of their film shooting permit from the Ministry of Culture and Tourism. Refund requests are processed exclusively through a Certified Public Accountant (YMM) report.
The refund amount can be paid within 30 days after the YMM report is submitted to the tax office. These procedures and timelines form the foundation of the Vat Exemption For Foreign Film Producers in Turkey.
For detailed information on the Vat Exemption For Foreign Film Producers in Turkey, please refer to the official guide provided by the Ministry of Culture and Tourism: Key Points – Filming in Turkey
