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Turkey facilitated the VAT return procedure for exporting manufacturers

Manufacturers who directly export the goods they manufacture, regardless of the sector, will be given the opportunity to request a refund up to 10% of the export price, limited to the transferred VAT amount, regardless of the VAT amount they have incurred in relation to export deliveries. As part of the fight against informality, the iron and steel industry will be included in the scope of withholding as of May 1.

The value-added tax (VAT) return procedure of the manufacturers who directly export the goods they produce, regardless of the sector, has been simplified.

The Communiqué Amending the Value Added Tax General Implementation Communiqué prepared by the Ministry of Treasury and Finance Revenue Administration was published in the Official Gazette.

With the Communiqué, the VAT refund procedure of the manufacturers that directly export the goods they produce, regardless of the sector, has been simplified.

Thus, regardless of the VAT amount charged on export deliveries, it will be possible to request refunds limited to the transferred VAT amount up to 10% of the export value.

The regulation in question will apply to refund requests regarding transactions to be made as of May 1.

“Optional Full Withholding Application” will be introduced as a new institution.

With the said application, as of May 1, upon the conclusion of a contract between the parties to the transactions within the scope of partial withholding, it will be possible to declare the entire VAT calculated for these transactions by the buyer as responsible, thus preventing the buyer taxpayers from experiencing VAT-related problems.

THE IRON AND STEEL INDUSTRY WILL BE INCREASED IN THE SCOPE OF WITHDRAWAL

As part of the fight against informality, the iron and steel industry will also be included in the scope of withholding as of 1 May.

Effective from this date, 4/10 VAT withholding will be applied for the delivery of products made of iron-steel and its alloys. However, withholding will not be applied for the first deliveries of these products by the importers and the first delivery of those produced exclusively from ore.

THE LIMIT IN THE TAX REVIEW REPORT OF RETURN REQUESTS OF TAX TAKERS HAS BEEN INCREASED

The limit of ₺5 thousand applied in the fulfillment of taxpayers’ refund requests in cash or on deduction without seeking a tax inspection report, certified public accountant (CPA) report or collateral will be increased to ₺10 thousand. The aforementioned regulation will be applied to refund requests regarding transactions to be made as of May 1.

The regulation also enabled these taxpayers to receive their VAT refunds in cash within the relevant year, due to the VAT rate reduction in electricity deliveries made to residential and agricultural irrigation subscriber groups.

Necessary explanations regarding VAT rate regulations (such as housing, food and beverage) made recently with the President’s Decision were also included in the communique.

Source: Sabah / Translated by Irem Yildiz

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