Due to the importance given to rural development, industrialists who want to invest in this area were exempted from VAT.
In the projects carried out within the scope of the Rural Development Investments Support Program (KKYDP), manufacturing industry investors were given the opportunity to benefit from VAT exemption in addition to 50 percent grant support.
The regulation, which is expected to increase the attractiveness of rural development investments, will be an important support tool, especially in provinces that cannot benefit from the rural development funds (IPARD) of the European Union.
Increased attractiveness of rural investments
According to the data of the Ministry of Agriculture and Forestry, the attractiveness of rural investments has been increased with the amendment made in the Decision on Supporting Agriculture-Based Economic Investments and Rural Economic Infrastructure Investments within the Scope of Rural Development Supports.
50 percent grant support is given to rural product investments
Within the scope of the program, 50 percent grant support was provided for economic investment projects such as agricultural product processing, storage and packaging, and VAT exemption was introduced until 31 December 2022 for the purchase of new machinery and equipment to be used in the manufacturing industry by VAT taxpayers with industrial registration certificates.
With the amendment, investors were also provided with the opportunity to benefit from the VAT exemption.
Those who have industrial registration certificate will be able to benefit. With the regulation, within the scope of KKYDP economic investment projects, manufacturing industry investors, those with industrial registration certificate, will benefit from 18 percent VAT exemption in addition to 50 percent grant support in the delivery of machinery and equipment to be included in the project.
