Even though VAT is a compensatory tax in theory, but it is not applied in practice.

Either "even though" at the start or "but" (after "theory" and before "it is" would be fine here, but not both

On the one hand, A&A does not have domestic sales in order to compensate existing VAT Credit, o. On the other hand, according to tax rules, we are not allowed to demand for thea VAT refund from the Tax Authority.

"On the one hand...On the other [hand]" works best in two sentences rather than one.

If we keep going [with existing circumtancesthings as they are], the VAT Credit will keeps increasing as it happes doned before and the money, registered as VAT Credit, will continue to lose its value.

Other ways of saying this include "If we keep going with the current climate" (as in business climate), or even "if we keep going like this."

When the inflation in Turkey is soaring to 90%, as it is at the moment, the money under VAT Credit will waste its reactual value in one year.

You could also say "Because inflation..." and have that be the only change, or "At the moment inflation in..., so the money..."

On the one hand, A&A does not have sufficient domestic sales in order to compensate for existing VAT Credit, o. On the other hand, according to tax rules, we are not allowed to demand for thea VAT refund from the Tax Authority.

If we keep going with existing circumtances, this situation is not resolved the VAT Credit keepswill continue increasing, as ithas happened before, and the money, registered as VAT Credit, will continue to lose its value.

When ithe inflation in Turkey is soaring to 90% at the moment, the money under VAT Credit will wastlose its real value in one year.