With the regulation published in the

on January 29, 2026 (today), it has been decided that the application will continue until December 31, 2030.

The VAT exemption, which has been in effect for approximately 27 years, had not been extended at the beginning of 2026, causing additional costs for exporting sectors. This uncertainty had put pressure on cash flow and cost management, particularly for companies producing under the Inward Processing Regime (IPR).

With the newly adopted omnibus law, it has been decided to extend the VAT exemption under the IPR for an additional five years. This ensures that companies engaged in export-oriented production can continue to purchase domestically sourced raw materials and intermediate goods without paying VAT.

Under this application, companies benefit from cost advantages by preferring domestic sourcing over imports, while also supporting local producers. This contributes to the strengthening of the domestic supply chain and the sustainability of industrial production.

Industry representatives emphasize that this extension is particularly critical for export-heavy sectors such as iron and steel, textiles, automotive, machinery, chemicals, and white goods. Continuation of the VAT exemption allows companies to maintain price competitiveness and secure a stronger position in export markets.

Furthermore, the regulation is expected to reduce exporters’ financing costs and lower their working capital needs. By removing the VAT burden, companies can redirect resources to increasing production capacity and making new investments.”