NEW AMENDMENTS WITH THE VAT COMMUNIQUE NO:23

The Communique No. 23 amends to the General Communique on VAT, published in the Official Gazette dated 15.02.2019 and numbered 30687, contains important explanations regarding the VAT Law and VAT refund system.

1- Input VAT on the invoices could be deducted from Output VAT till the end of the following fiscal year.

2- About Deliveries to the exporters for the purpose of exporting, those who delivers should get an approval letter from the exporters unless customs declaration forms include manufacturer company informations.

3- It is allowed to deduct Incurred VAT from the output VAT on such deliveries and services within the scope of partial VAT Exemption. Those deliveries and services are listed below:

• Free education and training services provided by private schools, universities and colleges (Article 17/2-b),
• Free dormitory services provided by dormitories (Article 17/2-b),
• Delivery of goods and services rendered free of charge on the basis of the requirements of the laws (17/2-b),
• All kinds of deliveries and services performed free of charge to the institutions and organizations listed in paragraph (1) of Article 17 of the Law No. 3065 (Article 17/2-b),
• Delivery of food, cleaning, clothing and fuel items donated to associations and foundations engaged in food banking activities to help the poor (Article 17/2-b),
• Delivery and services made free of charge to the diplomatic representations and consulates of foreign governments, foreign charities in Turkey, and the institutions and organizations mentioned in the paragraph (1) of Article 17 of the Law No. 3065 (Article 17/2-c )
• Deliveries regarding architectural services and implementation of architectural projects exclusively for the restoration, restoration and restitution projects of registered immovable cultural assets (Article 17/2-d),
• Services provided in free zones, and Freight to the/from free zones for the purpose of exporting (Article 17/4-i),
• Warehousing and terminal services for the goods subject to import and export operations and goods traded under the transit regime in bonded areas where customs warehouses and temporary storage places and customs services are provided (17/4-ö)

4- Delivery of Game Software Produced in Technology Development Zones and Specialized Technology Development Zones are being exempted from VAT.

5- The refund requests arising from the transactions subject to the discounted rate may be requested by the end of the following year by showing in the revision statements for any of the January-November taxation periods.

6- It becomes possible to deduct input VAT of the bad debts that is recorded and declared before.

7- VAT Refund deadlines are determined as 2 years, effective from 01.01.2019