With the New Arrangement, Offices Will Be Housing

Independent Accountant and Financial Advisor Emre Özerçen said that according to the regulation published in the official newspaper, counting 31927, it was possible to transform offices into residences under certain conditions.

Özerçen pointed out that with the new application, workplaces were converted into residences and a solution was produced for the housing shortage, and said, “In the Implementation Zoning Plans, 'Trade Housing' will be determined and the building permit will be issued in this way, and it will be issued before 18.08.2022. In the total of Commerce + Housing, the rate of housing use will not exceed 80%, and finally, a modification license will be issued until 1/7/2023.”

WHAT ARE THE CURRENT VAT RATES?

Financial Advisor Emre Özerçen stated that with the new application, the title deeds will be arranged as residences for the areas that have been converted from workplaces to residences. Özerçen said, “The VAT rate is 18% in the independent sections that are referred to as workplaces in the building permits. If the building permit is taken as a basis, even if the independent sections transform from offices to residences, construction companies will calculate VAT at the rate of 18% and issue their invoices accordingly. However, if the renovation license is taken as a basis, the gradual VAT rate will come into play, and 150% VAT will be calculated for the residences with a net area of ​​​​2 m8. Thus, VAT refund will be opened for the independent sections shown as residences in the title deed.

CAN I GET A VAT REFUND?

Emre Özerçen gave the following information about VAT refund: “It is obvious that the refund of the Value Added Tax, which cannot be recovered through discount for companies producing houses subject to reduced rates in the construction sector, contributes significantly to both financing and strengthening the working capital. Although our expectation is that the gradual VAT rate will be calculated for the independent sections whose title deeds are based on the renovation license, and it is of great importance that the subject be clarified by the administration.