Page 8 - VGMayıs_2018
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Vergide Gündem
            English Translation

                                            All that remain after the VAT reform…

                                            The draft law containing radical changes in Value Added Tax (VAT) Law also called
                                            as the “VAT reform” had been submitted to the Turkish Grand National Assembly at
                                            the end of February. The Law no.7104 was published in the Official Gazette dated
                                            6 April 2018 following its approval in the General Assembly with the removal of its
                                            certain arrangements from the text.

                                            Deferred VAT is not refunded!

                                            The VAT Law contains a provision indicating that the deferred VAT would not be
                                            refunded except some specific circumstances particularly for exports. The total
                                            amount of deferred VAT, deemed to be a sort of receivable from the government is
                                            pronounced at about TL 160 billion.

                                            The draft law which was submitted to the Grand National Assembly contained
                                            regulations allowing the refund of deferred VAT amounts to the taxpayers. Despite
                                            the different perceptions within the public opinion, of course a complete refund at
                                            one time was not possible. It was indicated that a certain portion of that amount
                                            would be refunded by considering the budgetary opportunities and through
                                            handling inspections.

                                            However, regulations concerning the refund of deferred VAT have been removed
                                            from the Law’s text during the negotiations at the General Assembly.

                                            Group VAT liability cancelled

                                            A regulation authorizing the Ministry of Finance to permit group companies
                                            for assigning a single VAT liability under certain terms was also existing within
                                            the draft. That provision has been removed from the Law’s text at the General
                                            Assembly, as well.
                                            No interest payment on late refund

                                            One of the most essential regulations was the provision requiring an interest
                                            payment, even at a rate of deferment interest to the taxpayer in the circumstance
                                            that the VAT had been refunded late. That was removed from the Law during the
                                            negotiations at the General Assembly, too.

                                            Period for VAT deduction extended

                                            Pertaining to the existing implementation, taxpayers are able to deduct the VAT on
                                            the documents issued for themselves within the period that they were entered into
                                            the books provided that the calendar year in which the taxable event occurred is not
                                            exceeded. By the new Law, a facility has been introduced to use that deduction right
                                            until the end of the calendar year following the calendar year in which the taxable
                                            event occurred. However, this will not be enacted immediately. It will be effective
                                            from 1 January 2019.

                                            Time limit on claims for VAT refund

                                            Regarding the VAT incurred for the refundable transactions such as exports and
                                            could not be compensated through deduction; the requirement of claiming it until

     8                                                  Mayıs 2018
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