Turkey’s position as the primary textile “near-shoring” hub for Europe has been cemented by aggressive investment incentives. In 2027, the Turkish government has expanded its support for modernizing domestic mills to compete with rising Asian hubs. For machinery traders and local factory owners, the Turkey textile machine VAT exemption 2027 HS Code guide is the most critical document for optimizing capital expenditure (CAPEX).
The 2027 Investment Decree: 0% VAT
Under the latest Ministry of Industry and Technology decree, imports of “High-Tech and Environmentally Sustainable” circular knitting machines are eligible for a 18% VAT exemption. Machines equipped with AI fabric inspection or IE5 energy-efficient motors are prioritized.
HS Codes and Eligibility Criteria
| HS Code | Description | VAT Status (with Certificate) | Duty Status (2027 Decree) |
|---|---|---|---|
| 8448.51 | Circular knitting machine spare parts (cylinders, cams) | 0% | Reduced (ATR/EUR.1) |
| 8447.11 | Circular knitting machines (Cylinder < 165mm) | 0% | 0% |
| 8447.12 | Circular knitting machines (Cylinder > 165mm) | 0% | 0% |
Navigating the “Investment Incentive Certificate”
The VAT exemption is not automatic at the border. Importers must apply for an Investment Incentive Certificate (Yatırım Teşvik Belgesi) before the machine leaves the port in China.
References
- Ministry of Industry and Technology (Turkey): Investment Incentives Guide 2027
Official portal for E-Teşvik application and tax exemption decrees. - Trade.gov: Turkey – Import Requirements and Documentation
U.S. Commercial Service guide on Turkish customs procedures and ATR movement certificates. - ITMA 2027: The Near-Shoring Boom in Turkey and Central Asia
Industry report on the shifting machinery demand in the Turkish textile corridor. - Turkish Revenue Administration (GİB): VAT Law Decree 2027
Official legislative database for verifying 0% VAT eligibility for industrial equipment. - Textile World: Optimizing Supply Chains for the EU Customs Union
A strategic overview of how Turkish manufacturers leverage trade agreements for machinery sourcing.