Optional Full Withholding Application and Refund Application According to Export Value Have Been Introduced
- The new applications introduced with the amendment made in the Value Added Tax General Implementation Communiqué are summarized below.
- While calculating the cost value + 10% precedent value for the invoice to be issued by the contractor to the land owner, who is not VAT taxpayer, in the calculation of the precedent value in the delivery of the flat and land within the scope of the construction contract in return for the flat, the cost value for the land value + 5% precedent value will be calculated for the land owner if the land owner is a VAT payer.
- Optional full withholding has been introduced for services and deliveries within the scope of partial VAT withholding.
- In the export of goods made by the manufacturers, a refund application has been introduced according to the export price.
- 4/10 VAT withholding has been introduced for the delivery of iron and steel products. 5) Iron and steel ingot deliveries are included in the scope of VAT withholding.
- Within the Value Added Tax General Implementation Communiqué, the limit amount of 5,000 TL determined as the refund limit amount that can be made on deduction or in cash without seeking a Tax Inspection Report or CPA Report has been increased to 10,000 TL.
With the Communiqué on the Amendment of the Value Added Tax General Implementation Communiqué (Serial No: 41) dated 21.04.2022 and numbered 31816, some changes were made in the Value Added Tax General Implementation Communiqué and new applications were introduced.
The main headings of the changes are as follows.
1-) While calculating the precedent value + 10% for the invoice to be issued by the contractor to the land owner who is not VAT taxpayer, for the delivery of flats and land within the scope of the construction contract in return for flat, the cost value for the land price + 5% precedent value is calculated if the land owner is VAT taxpayer. will be calculated.
Example 1 and Example 2 in the section of Value Added Tax General Implementation Communiqué (I/B-8.2.) published in the Official Gazette dated 26/4/2014 and numbered 28983 have been amended as follows.
“Example 1: Mr. (A) who is not liable for VAT, contractor (B) A.Ş. signed a construction contract in return for land share (floor) for its land in Kastamonu on 20/5/2020 and the construction license for this contract was obtained on 27/5/2020. According to the aforementioned contract, the owner of the land, Mr. (A), took delivery of 8 of the 20 residences and 2 of the 5 workplaces on 20/5/2022.
(B) A.Ş., 4,400,000 TL, respectively, by adding 10% to the cost price due to the fact that 8 residences and 2 workplaces are retail sales to be given to the land owner on the basis of the cost value in the second row in the second paragraph of Article 267 of the Law No. 213. A total of 6.050.000 TL, of which 1.650.000 TL was calculated, was calculated.
Assuming that the houses built are less than 150 m2, (B) A.Ş. A total of 341,000 TL VAT will be calculated, including 44.000 TL VAT for the residences (4.400.000x%) and 297,000 TL VAT for the workplaces (1.650.000x18%).
If Mr. (A) delivers the land to the contractor (B) A.Ş., VAT will not be calculated. (C) Ltd. instead of Mr. (A), who does not have VAT liability, of the land in question. Şti., on 20/5/2022, which is the delivery date of the residences and workplaces in return for the land share, 5% to the cost value in the second row of the second paragraph of the 267th article of the Law No. 213 for the independent sections of (B) A.Ş. (C) Ltd. Sti. will need to calculate 8% VAT for the land share.
Example 2: (D) A.Ş. For the land registered in its asset, the contractor (B) A.Ş. signed a construction contract in return for land share (floor) on 17/5/2022 and the construction license for this contract was obtained on 24/5/2022. According to the said contract, the land owner (D) A.Ş. It will purchase 8 of the 20 residences to be built (4 of which have a net area of 140 m2, 4 of which have a net area of 160 m2) and 2 of 5 workplaces. (B) A.Ş., by adding 5% to the cost price, for 8 residences and 2 workplaces, which will be given to the land owner on the basis of the cost value in the second row in the second paragraph of Article 267 of the Law No. 213, for the residences, respectively, 2.000.000. A total of 5.400.000 TL has been calculated as TL and 2.400.000 TL, 1.000.000 TL for workplaces.
In this case (B) A.Ş. Regarding the residences and workplaces delivered to the land owner by;
- For 4 residences of 140 m2: (2.000.000x8%)=160.000 TL,
- For 4 residences of 160 m2 (8% VAT on the price corresponding to 150 m2 of each house, 18% VAT on the part exceeding 150 m2): (2.400.000x150/160x8)+(2.400.000x10) /160x%18)=180.000+27.000=207,000 TL,
- For 2 workplaces: (1,000,000x18%)=180,000 TL, for a total of 5,400,000 TL (160,000+207,000+180,000)=547,000 TL VAT will be calculated.
In the delivery of the land share made to (B) A.Ş. in return for the residences and workplaces purchased by the VAT payer land owner (D) A.Ş., 5% of the second-line cost value of the residences and workplaces included in the second paragraph of Article 267 of the Law No. 213. 432.000 TL VAT will be calculated at the rate of 8% (5.400.000x8%) over the 5.400.000 TL found by adding it.”
2-) Optional Full Withholding Application Has Been Introduced for Services and Deliveries Within the Scope of Partial VAT Withholding
The taxpayers, from the seller taxpayers with whom they have agreed for a period of one year by issuing a written contract, to the transactions specified in the sections (I/C-2.1.3.2.) and (I/C-2.1.3.3.) of the Communiqué (I/C-2.1.3.2.131). .) and (excluding the transactions in I/C-2.1.3.3.72 .) section), regardless of whether they have withholding responsibilities in their purchases, they will be able to declare and pay all of the calculated VAT as responsible.
If it is desired to continue the application in the years following the end of the one-year period, the contract must be renewed for the same period. It is not possible to abandon the said application before the one-year period expires.
1 2.1.3.2.13. Services other than those specified above VAT withholding is applied at the rate of 5/10 in all other services rendered by VAT taxpayers to administrations, institutions and organizations within the scope of the charts attached to the Law No. 5018 and not mentioned above.
2 2.1.3.3.7. Other Deliveries In all other deliveries (excluding water, electricity, gas, heating, cooling and similar energy uses) made by VAT payers to the General Directorate of State Supply Office and not specifically specified in the Communiqué, VAT withholding (2/10) is applied by the said institution.
Buyer taxpayers submit a copy of the aforementioned contracts and the information (name, surname/title, tax office, tax identification number, contract implementation period) of the seller taxpayers who will transact in this context, to the tax office they are affiliated with before submitting the VAT declaration regarding the transaction. Termination, amendment, etc. of contracts. cases must also be reported to the tax office they are affiliated with before submitting the VAT declaration regarding the transaction.
In the transactions of the buyers with the sellers for whom a contract has not been drawn up within the scope of the optional full withholding application, the transaction will be established in accordance with the general provisions.
VAT, which is subject to withholding by the buyer within the scope of the optional full withholding application, is declared in the "Notification Regarding Transactions with Optional Full Withholding" of the "Tax Declaration" tab of the VAT Declaration No. 2. The “Transaction Type” field of the table is filled by selecting from the transaction type list related to this field. Value of the transaction excluding VAT is entered in the “Base” field, and the VAT rate to which the transaction is subject is entered in the “Rate” field. The "Tax" field, which shows the VAT amount withheld by the buyer, is calculated by the e-declaration program.
Seller taxpayers who carry out the transactions within the scope of the optional full withholding application register in two separate sections of the VAT Declaration No. 1 for the relevant period. The first record is in the table “Transactions with Full Withholding on Demand” in the “Base” tab; The second entry is made in the "Transactions Covered by Optional Full Withholding" table in the "Exceptions-Other Transactions Entitled to Refund" tab.
VAT refund can be made to the seller, limited to the VAT subject to optional full withholding. VAT refund requests arising from this practice are fulfilled for each transaction within the framework of the procedures and principles set forth in the section of the Communiqué (I/C-2.1.5.). In the fulfillment of the return requests, the tax office is required to pay the VAT declared and accrued by the buyer with the VAT Declaration No. 2.
Those who have transactions within the scope of this application are subject to the Communiqué (I/C2.1.4.) in terms of correction transactions, the Communiqué (I/C-2.1.5.) in terms of refund of the tax subject to withholding, and the Communiqué (I/C-2.1.6.) in terms of notification and joint liability. .) sections.
3-) In the Exports of Goods Made by Manufacturers, Returns According to the Export Value Application has been introduced.
Manufacturers that directly export the goods they manufacture, regardless of the sector, may request refunds up to 10% of the export value, limited to the transferred VAT amount, regardless of the VAT amount they have incurred in relation to export deliveries.
This application is optional and the manufacturers defined in the section of the Communiqué (II/A-8.3.) can benefit from the application.
Manufacturers' transactions within the scope of this application, 338 coded "Manufacturers' Exports of Goods [VAT-(II/A-1.1.4.2.)]" line in the "Transactions Covered by Full Exception" tab of the "Exemptions-Other Transactions Entitlement to Return" of the VAT declaration of the relevant period. declare by using
VAT amount subject to refund is written in the column of "VAT Charged" in this line, provided that it does not exceed 10% of the export value, without calculating the VAT incurred for the exported goods.
On the other hand, in order to benefit from the import exemption in case the exported goods are returned, the amounts returned within the scope of this application must be paid to the customs administration or a guarantee equal to this amount must be provided.
Within the scope of this section, manufacturers may request a refund for the goods they have manufactured and exported, which are stipulated in the production capacity specified in the manufacturer's documents specified in the section (II/A-8.3.) of the Communiqué .
This application can be used for the goods that can be manufactured according to the production capacity in the manufacturer's certificate and for the goods manufactured as a contract in this context. Therefore, subcontracting of all the goods subject to production in the manufacturer's certificate does not prevent the application of returns in this context.
Although the manufacturers cannot benefit from this application for the goods they have already purchased from the market and exported, they may request the refund of the VAT incurred within the scope of the section of the Communiqué (II/A-1.1.4.1.) for the said goods.
In the same period, the fact that the manufacturers also deliver with export registration within the scope of 11/1-c or temporary Article 17 of the Law No. 3065 does not prevent them from benefiting from this practice in terms of the goods they export directly.
In case the goods supplied by the manufacturers directly from the country or abroad without paying VAT are included in the goods they export, the cost of the goods supplied in this way is deducted from the export price in the calculation of the refund regarding the export price. The VAT to be refunded is determined by taking into account the remaining amount.
It is not possible for the manufacturers requesting a refund within the scope of this section to request a refund based on the VAT amount charged separately for the amount that they cannot receive the refund regarding the same export delivery . However, instead of this application, manufacturers may request the refund of the VAT incurred on the export of the products they manufacture within the scope of the section of the Communiqué (II/A-1.1.4.1.).
In addition, taxpayers who benefit from this application for a period of time can benefit from the VAT refund application for other periods.
The regulation entered into force on the date of its publication in order to be applied to refund requests regarding the transactions to be made as of 1.5.2022.
4-) 4/10 VAT withholding has been introduced for the Delivery of Iron-Steel Products.
VAT at the rate of 4/10 will be applied for the delivery of products made of iron-steel and its alloys, specified in the section of the Communiqué (I/C-2.1.3.3.8.2.) to those listed in the sections (I/C-2.1.3.1/a and b) of the Communiqué. .
Withholding is not applied in the first delivery of products made of iron-steel and its alloys by the importers and those produced exclusively from ore by the producers. However, if products made of iron-steel and its alloys are produced from scrap, other raw materials or by using scrap, ore and other raw materials together, withholding is applied to the deliveries of these products at every stage, including the delivery of the first producers.
In the invoice issued for the deliveries made by the importers, “Since the delivered goods are directly imported, no withholding has been applied.” description and the invoice and customs declaration information regarding the import. Those who produce from ore, on the other hand, stated in the invoice, “Since the delivered goods are produced exclusively from ore by our company, no withholding has been applied.” It makes transactions without applying withholding by including the explanation.
Within the scope of withholding; all kinds of long (bar, rebar, profile, coil iron, wire rod, wire, rope, mesh, pipe, flat bar, etc.) or flat (plate, hot rolled flat products) made of iron-steel and alloys produced from ore, scrap or other raw materials , cold rolled flat products and coated flat products, etc.) iron-steel and alloy products. Withholding on deliveries of goods made of iron-steel and its alloys (door, door handle, angle iron, screw, nut, screw socket, dowel, lock, nail, flange, sleeve, elbow, hook, hinge, spring, ball, bearing, chain, etc.) not applicable.
The regulation will enter into force as of 1.5.2022.
1-) Iron and steel ingot deliveries are included in the scope of VAT withholding.
Iron and steel ingot deliveries will be subject to 7/10 VAT withholding as of 1.5.2022.
2-) The return limit amount from 5.000 TL has been increased to 10.000 TL.
Within the Value Added Tax General Implementation Communiqué, the limit amount of 5,000 TL determined as the refund limit amount that can be made on deduction or in cash without seeking a Tax Inspection Report or CPA Report has been increased to 10,000 TL.
The regulation entered into force on the date of its publication in order to be applied to refund requests regarding the transactions to be made as of 01.05.2022.
“Communiqué Amending the Value Added Tax General Implementation Communiqué (Serial No: 41)”...>>>