The Communiqué Amending the Value Added Tax General Application Communiqué was released in the Official Gazette.
Following are the articles of the Communiqué:
" ARTICLE 1- 26/4/2014 dated 28983 numbered and 28/4/2014 dated Official Gazette published in the General Implementation Communiqué on Value Added Tax (I / C-2.1.1.1.2.) Section of the second and third paragraphs and the Example has been removed from effect and the following paragraph has been added to come after the first paragraph.
"On the allowance of VAT subject to withholding, Communiqué (III / C-1.1.) The explanations in the section are taken into consideration."
ARTICLE 2- Same Communiqué (I / C-2.1.3.2.13.) section of the Communiqué (I / C-2.1.3.2.13.) "Public institutions and organizations established by Presidential Decree," to come after the phrase "state economic enterprises (state economic organizations, economic state enterprises)," expression has been added.
ARTICLE 3- The same Communiqué (I / C-2.1.3.4.1.) in the third paragraph of the section (I / C-2.1.3.4.1.) "2.000 TL" The expression "the invoice issuance limit determined according to Article 232 of the Tax Procedure Law No. 213 for the year in which the transaction was made" has been changed as.
ARTICLE 4- Same Communiqué (I / C-2.1.4.4.1.) Sample in the section has been modified as follows.
"Example: Cotton wholesaler (A) delivered cotton to textile company (B) on 14/4/2024 in return for 500.000 TL, and (50.000 x 0,10 =) 5.000 TL of the calculated (500.000 x 0,10 =) 50.000 TL VAT was paid to (A) and declared by him, and (50.000 x 0,90 =) 45.000 TL was subject to withholding by (B) and declared and paid as responsible with the declaration for the April/2024 period.
Invoice related to the transaction was taken into legal records on 21/4/2024 by (B). (B) has declared 5.000 TL paid to (A) and 45.000 TL declared as responsible and paid on 23/5/2024 and made a discount in the VAT Declaration No.1 for the April/2024 period.
(1/5) of the cotton in question was returned to (A) on 10/6/2024.
In this circumstance, (B) will receive 101.000 TL back from (A) and declare 1.000 TL with VAT Declaration No.1 in the period when the return of goods is realized.
(A), in the same period, will deduct 1.000 TL in the VAT Declaration No.1.
These transactions will be adjusted for only 1.000 TL of VAT in the ledgers due to these transactions are not subject to withholding, withholding will be subject to withholding and declared and paid as responsible and will not be adjusted for the amount that has been made subject to deduction."
ARTICLE 5- Same Communiqué (I / C-2.1.4.4.2.) The Example in the chapter has been amended as follows.
"For example: The seller (A) Company prepared an invoice of 1.000.000 TL to the buyer (B) Company for a transaction subject to withholding at the rate of (7/10) in the period 2024/April, and 60.000 TL of (200.000 x 0,30=) 200.000 TL VAT shown in the invoice was paid to (A), (200.000 x 0,70=) 200.000. 000 x 0,20 =) 200.000 TL VAT (200.000 x 0,30 =) 60.000 TL was paid to (A), and (200.000 x 0,70 =) 140.000 TL was declared and paid by (B) as responsible.
As the seller (A) could not complete some of this work, a decrease of 200.000 TL occurs in the price.
Due to this change in the 2024/May period, the parties are required to make mutual adjustments.
In this respect, the seller (A) will return 200.000 TL to the buyer (B) together with 200.000 TL (200.000 x 0,20 =) 40.000 TL VAT (40.000 x 0,30 =) 12.000 TL (total 212.000 TL), which is not subject to withholding (40.000 x 0,30 =) 12.000 TL (total 212.000 TL), and will make 12.000 TL declared in the 2024/April period as a deduction in the VAT Declaration No.1 for the 2024/May period.
On the other hand, Buyer (B) will declare the 12.000 TL, which was subject to discount in the 2024/April period, with VAT Declaration No.1 in the 2024/May period.
Buyer (B)'nin this transaction because of the tax declared and paid by subjecting to withholding tax, 200.000 TL, which is the part corresponding to (40.000 x 0,70 =) 28.000 TL is also subject to discount at the same time, will not be topic to a correction process."
ARTICLE 6- Same Communiqué (I / C-2.1.5.1.) section of the last paragraph has been repealed.
ARTICLE 7- The same Communiqué (I / C-2.1.1.5.2.1.) The second and third paragraphs of the section and the phrase "document or" in the first sentence of the sixth paragraph has been removed and the last sentence of the sixth paragraph has been modified as follows.
" The offset requests of the payers who eliminate the deficiencies after the 30-day additional period are fulfilled as of the date the deficiencies are eliminated and a delay surcharge is applied for the period between the date the deficiency letter is notified to the taxpayer and the date the taxpayer eliminates the deficiencies. For the periods elapsed during the transactions made in the tax offices regarding this request, no delay increase is applied."
ARTICLE 8- Same Communiqué (II / B-11.6.) The phrase "this tax declared, belonging to the same period" in the fourth paragraph of the section "this tax paid by declaring," has been changed as.
ARTICLE 9- The phrases "31/12/2023" in the first paragraph of the section (II / E-3.) of the same Communiqué (II / E-3.1.1.) and the second paragraph of the section (II / E-3.1.1.) "31/12/2023" has been changed as "31/12/2028".
ARTICLE 10- The phrase "31/12/2023" in the second paragraph of the section (II/G-2.) of the same Communiqué has been modified as "31/12/2028".
ARTICLE 11- The expressions "31/12/2023" in the section (II/G-6.) of the same Communiqué have been revised as "31/12/2028".
ARTICLE 12- The expressions "31/12/2023" in the section (II/G-7.) of the same Communiqué have been replaced as "31/12/2028".
ARTICLE 13- The same Communiqué (III/C-1. ) in the first paragraph of the section of the same Communiqué (III / C-1.) The phrase "or" has been changed to "or", the phrase "or VAT paid by declaring as responsible by those held responsible for making tax deductions" has been added to come after the phrase "VAT paid due to the goods and services they import", the phrase "paid by declaring as responsible with the tax" has been added to come after the phrase "calculated due to the services it has made" in the second paragraph and the following section has been added to the end of the same section with its title.
"1.1. The Deduction of VAT Paid by Declaring as Responsible
With the Law dated 27/12/2023 and numbered 7491 which was published in the Official Gazette dated 28/12/2023 and numbered 32413 dated 28/12/2023 and published in the Official Gazette dated 27/12/2023 and numbered 7491, an amendment was made to Article (29/1) of the Law No. 3065 and it was stipulated that VAT paid by those who are held responsible for making tax deductions by declaring as responsible can be subject to deduction.
Accordingly, the VAT withheld by those who are responsible for making tax deductions from the January/2024 taxation period and declared with the VAT Declaration No.2 must be subject to deduction in the VAT Declaration No.1 for the taxation period in which it is paid.
But within the framework of the authorization given to our Ministry in Article (29/5) of the Law No. 3065, the VAT, which is withheld by those who are held responsible for making tax deductions and paid in due time by declaring it in due time with the VAT Declaration No. 2 for the same period given before the VAT Declaration No. 1 for the period in which the withholding is made, has been found suitable for deduction in the VAT Declaration No. 1 of the period to which the VAT Declaration No. 2 belongs.
It is possible to apply a deduction for the part of the VAT declared by those who are held responsible for withholding tax, but partially paid.
Additionally, in transactions subject to partial withholding, the part of the VAT calculated over the transaction price to be declared by the seller is subject to discount in the VAT Declaration No.1, which must be submitted for the period in which the invoice or similar document belonging to the transaction is recorded in the ledgers, provided that the calendar year following the calendar year is not exceeded by the buyer.
Example: (D) A.Ş. received wood and forestry products for 100.000 TL on 8/1/2024. If the 10.000 TL VAT withheld by the company regarding this purchase is declared in due time with the VAT Declaration No.2 and the accrued 10.000 TL VAT is paid until 23/2/2024, this amount will be subject to deduction in the VAT Declaration No.1 for the January/2024 period by the taxpayer.
ARTICLE 14- The same Communiqué (IV / A-2.1.2.) section of the Communiqué (IV / A-2.1.2.) "document or" phrase in the first sentence of the fourth paragraph has been repealed and the following sentences have been added to the end of the same paragraph.
" After the additional period of 30 days, the offset requests of the taxpayers who eliminate the deficiencies are fulfilled as of the date the deficiencies are eliminated and a delay increase is applied for the period between the date the deficiency letter is notified to the taxpayer and the date the taxpayer eliminates the deficiencies. For the periods elapsed during the transactions made in the tax offices regarding this request, no delay increase is applicable."
ARTICLE 15- The same Communiqué (V / B-3.) in the first paragraph of the section "VAT taxpayers; specified in Article 9 of the Law, those held responsible for making VAT deductions," the phrase "VAT taxpayers" has been changed as, the following sentence has been added to the end of the same paragraph and the phrase "January 15, 2012" in Example 2 in the same section "January 15, 2012" phrase "February 15, 2024" as, "February 24, 2012" phrase "March 21, 2024" has been changed as.
"Those who are held responsible for making tax deductions are obliged to submit their VAT declarations No.2 to the relevant tax office until the evening of the 21st day of the month following the taxation period."
ARTICLE 16- Same Communiqué (V / D) in the second paragraph of the section "24th" phrase "21st" as, "26th" phrase "23rd" has been revised as.
ARTICLE 17- This Communiqué;
a) The 2nd and 3rd articles at the beginning of the month following its publishing,
b) The other articles on the date of publication,
enters into enforcement.
ARTICLE 18- The Minister of Treasury and Finance executes the provisions of this Communiqué."
To access the Communiqué, click here.
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