Value Added Tax General Application Communiqué Has Been Revised
There have been certain changes in Value Added Tax General Application Communiqué with The Communiqué on Amending Value Added Tax General Application Communiqué (Serial No. 30).
Article 1 of the Communiqué regarding the Withholding Practice in the Services Provided During the Operating Period Regarding the Health Facilities Built with the Public Private Cooperation Model will enter into force on 01.03.2020; while other regulations became effective as of publication date.
Within the scope of regulation, amendments are as below;
- Rent transactions of health facilities built with the Public Private Cooperation Model to the Ministry of Health are exempted from VAT.
- Withholding will not be applied to the invoices (excluding construction works) issued by subcontractors who do not actually perform the services provided for health facilities.
- VAT withholding [at the rate of (3/10) of construction works] (5/10) is required to be applied by the Ministry of Health within the scope of the (I / C-22.214.171.124.13.) section of the Communiqué regarding the services provided by the contractor firm to the Ministry of Health through subcontractors.
- The duration of VAT exemption regarding deliveries of new machinery and equipment to be used in production industry by the VAT payers, who have industry registry certificate, has been extended until 31/12/2022.
- A regulation was also made regarding application of value added tax that was charged in 2020 and 2021 and cannot be eliminated through a discount, as regulated in the relevant article regarding the refund of VAT, which is incurred due to construction works and cannot be deducted, for investments made within the scope of the investment incentive certificate for the production industry.
- VAT rate to be applied to the services of laboratory, rehabilitation, monitoring and food provided by contractor firm through subcontractors are explained with the regulation.
Relevant circular in Turkish regarding the subject can be accessed from here.