27October2022

Amendment in Value Added Tax General Implementation Communiqué (Serial No 43)

With the Communiqué on Amending Value Added Tax General Implementation Communiqué Serial No 43 published in the Official Gazette No. 31994 on 25.10.2022, there have been certain changes in Value Added Tax General Implementation Communiqué.

With the Amended Communiqué;

VAT withholding, which is applied at the rate of 4/10 for the delivery of products made of iron - steel and its alloys, has been increased to 5/10 as of 01.11.2022.
VAT refunds, arising from the deliveries of the goods included in section (A) of the list (I) of the annex of the Council of Ministers Decision no 2007/13033 in the January-June period of the calendar year, have been enabled to be in cash provided that they are requested as of June of the relevant year at the earliest and November of the relevant year at the latest.
If the exchange rate difference in favor of the taxpayer, who makes the transaction within the scope of the full exemption, occurs before the refund transactions are concluded, this amount is required to be deducted from the refund account. The amount that cannot be refunded can be included in the discount accounts for the period in which the exchange rate difference occurs. In case the exchange rate difference occurs after the refund transactions are concluded, it is not necessary to make any amendments to the refund account.
In transactions subject to partial withholding, the portion of the VAT calculated over the transaction price, declared after the legal period as reverse charge, will be subject to discount in the VAT Declaration No. 1 of the period in which the payment for this declaration is made.
In addition to the letter of guarantee in VAT refunds, an insurance company's surety bond can be provided as well. Regulation will be effective as of 01.11.2022.

Official Gazette related to the subject can be accessed from here (In Turkish).

Should you have any queries or need further details, please contact your customer representative.

Author Selma Kıy, Category Taxation Law

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