Abstract:

With the spread of foreign trade, there have been significant developments in the service sector. Every country has some incentives to increase its export rates. Turkey has provided some tax incentives for exporting firms. The most important of these incentives is the value added tax exemption for exports. Value added tax is a type of tax imposed on the final consumer with the delivery of goods and services. At the same time, the value added tax is a consumption tax which constitutes a significant proportion of the tax collected in Turkey. On the other hand, it is one of the most important trade item for Turkey's tourism income. In recent years, “health tourism” activities have gained momentum in Turkey. For the development of this sector, VAT exemption has been arranged for health services provided to foreigners in Turkey by adding subparagraph (l) to the 13th article of the Value Added Tax Law no. 3065 together with the Law No. 7104. The justification of the arrangement is that it encourages and revitalizes health tourism and makes the health system a strong part of the economy and provides foreign currency inflow to the country. In this study, the scope of the health service exemption given to foreigners, its features and recommendations on the problems experienced in practice are discussed.

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