Compliance
Turkey Grants Relief in VAT Reporting: Special Purpose CPA Rules Extended
Turkey’s Revenue Administration is extending deadlines around special-purpose CPA reports needed for input VAT deductions, easing the burden temporarily on businesses.
By NomadicTax Research Team • 5-8 min read • August 18, 2026
## What Has Changed?
- Turkey’s **71st Circular** under the VAT General Application Law (3065 Numbered VAT Law) has been published.([gib.gov.tr](https://gib.gov.tr/duyuru-arsivi/guncel/18539_3065_sayili_katma_deger_vergisi_kanunu_71_nolu_sirkuler_yayimlandi?utm_source=openai))
- It allows **extension of deadlines** for submitting **Special Purpose CPA (certified public accountant) reports** that establish eligibility for deducting VAT which was **previously rejected**.
## Who Is Affected?
- VAT-registered businesses whose **input VAT deduction was denied**, possibly due to missing or incomplete CPA reports
- CPA professionals and auditors helping clients make claims
- Accounting staff who prepare VAT returns and supporting documentation
## Practical Implications
- **More time**: Businesses have additional time to produce valid CPA reports and submit them without risking current denial of the deduction.
- **Cash flow and compliance benefits**: Bringing claims back into inventaire improves VAT credit position, reducing net tax liabilities.
- **Reduced risk**: For those who lost deductions, there’s a window to comply before enforcement catches up.
## Example
A company which imported machinery last year, but its VAT-deduction request was denied due to no CPA report, now can upon extension, obtain the report and regain input VAT credit that was previously disallowed. Say your original claim was €5,000; with the circular, you may now collect that sum if the report is submitted within the extended deadline.
## Action Steps for Businesses
1. Check your **VAT returns** for any line items where deduction was rejected due to missing CPA report.
2. Engage a **certified public accountant** to prepare or validate the needed report ASAP.
3. Submit the CPA report within the newly extended deadline—you’ll likely avoid further penalties.
4. Document everything: date of rejection, reason, submission of extended report.
## Why This Matters
- Helps businesses recover deductions—increasing cash flow.
- Shows government is offering relief where compliance is challenging.
- Signals an intention to improve VAT system fairness and reduce burdens in verification for compliant taxpayers.
**Bottom line:** If you're dealing with denied VAT deductions due to CPA reporting gaps, this circular provides an opportunity to correct early mistakes—don’t miss the chance to reclaim eligible credits.