04.04.2023/51
Status of VAT Base Increase within the Scope of Law No. 7440 against Special Principles
01.04.2023 tarih ve 32150 sayılı Resmi Gazete’de yayımlanan 46 Seri No.lu Tebliğ ile Katma Değer Vergisi Genel Uygulama Tebliğinin IV/E-16 numaralı bölüm eklenmiştir.
With this regulation, explanations regarding the status of those who increase the VAT base within the scope of Law No. 7440 against special principles are included.
Tax Base Increase and Exit from Special Principles
For the taxation periods of December/2022 and before;
- With a negative report on the use of forged documents or misleading documents as to their content
- Using forged documents or misleading documents,
- Failure to file a declaration,
- Unable to be found at your address,
- Failure to submit books and documents
taxpayers who have negative determinations and are therefore subject to special principlesFor all periods in which they were active in the calendar years 2018, 2019, 2020, 2021 and 2022Those who increase VAT within the scope of the 5th and provisional 1st articles of the Law No. 7440 (If the activity is started in any of these years, the activity should be increased for the year in which the activity is started and for the following years; If the activity is abandoned, the activity should be increased for the year in which the activity is abandoned and for the previous years)., from the date they pay the full amount of the increase will be excluded from the scope of special principles.
Taxpayers who are removed from the scope of special principles by increasing VAT in accordance with the 5th and provisional 1st articles of the Law No. 7440 for all of the periods in which they were active in the calendar years 2018, 2019, 2020, 2021 and 2022 are not taken back to special principles within the scope of the above-mentioned negativities for the years of increase.
Taxpayers who have made VAT increases even though they are not under special principles are not included in the scope of special principles due to the determinations to be made for the negativities related to the taxpayers they purchased from in the years they made the increase. However, in the event that a negative determination is made about these taxpayers for using false documents for the years of the increase, without prejudice to the provisions of section (IV/E-5) of the CommuniquéTranslated with www.DeepL.com/Translator (free version),If, as a result of the correction process regarding the VAT carried forward to the next period, a tax assessment is required to be made in a year in which the increase is not made, the correction process will be made even if the taxpayer is not taken on special basis.
Payment Terms
Taxpayers who benefit from the installment application in payment, the full amount of the calculated amounts and 10% of the amount of an installment;
- Bank letter of guarantee (must not have any restrictive conditions),
- Insurance company surety bond (must not contain any restrictive conditions),
- Government bonds or treasury bills
In the event that they show collateral in terms of collateral, their return to general principles is ensured without waiting for the full payment of the installments.
In the event that the taxpayers who provide collateral in this way do not pay the installments according to the aforementioned Law, the unpaid installments become due and the entire remaining debt is collected by converting the collateral into money.
Increase in the tax base within the scope of Law No. 7326
Within the scope of Law No. 7326, for the years 2018, 2019 and 2020 (in case of commencement of activity in any of these years, for the year of commencement of activity and the following year), in the return of those who have benefited from the increase to the general principles, provided that the conditions for benefiting are not violated, the condition of re-increase for these years is not required.
Admission to Special Principles for Other Reasons
The VAT increase of those to whom special principles are applied for reasons other than those mentioned above does not enable them to return to general principles. Likewise, the VAT increase of those to whom special principles should be applied due to reasons other than those mentioned above does not prevent them from being subject to special principles.
Status of Refund Requests
Within the scope of the 5th and provisional 1st articles of the Law No. 7440, in the return requests of the taxpayers who are removed from the scope of special principles or who are not included in the scope of special principles depending on the VAT increase within the scope of the 5th and provisional 1st articles of the Law No. 7440, if it is determined that they have purchases from taxpayers with negative rights, the provisions specified in section (IV / E-11) of the Communiqué will be applied about them.
Status of Ongoing Investigations
Pursuant to subparagraph (b) of the ninth paragraph of Article 5 of Law No. 7440, as of the date of entry into force of the aforementioned article, the book in paragraph (b) of Article 359 of Law No. 213, In the event that those who continue the tax inspection based on the acts of destroying the records and documents or destroying the book pages and replacing them with other leaves or not putting any leaves at all, or forging the original or copies of the documents in whole or in part, or those who continue the tax inspection based on the acts mentioned in paragraph (ç), in case they increase the VAT within the period specified in the aforementioned Law and in the prescribed manner, the accrual transactions regarding the increases made for all of the periods covered by the Law should be held until the completion of the said tax inspection.
The return to general principles of taxpayers who are in this situation and who have increased VAT for all of the periods in which they were active in the calendar years 2018, 2019, 2020, 2021 and 2022, in the event that the tax inspection cannot be concluded within the period specified in the relevant article or the existence of these acts is not determined in the tax inspection and the other conditions stipulated in the article are met, the taxes calculated as a result of the tax increase are paid or if the installment opportunity is to be used, it is fulfilled if the collateral is shown as stated above.
The relevant Press releaseis available here.
Sincerely,
BİLGENER
