04.04.2023/52
Press release Serial No. 46 and Other Amendments to the Value Added Tax General Implementation Communiqué
Communiqué Serial No. 46 published in the Official Gazette dated 01.04.2023 and numbered 32150 made some amendments to the Value Added Tax General Implementation Communiqué.
Some of these were included in our previous Circulars (No. 48, 49, 50 and 51).
Other regulations in the Communiqué will be explained in this Circular.
1) The Minimum VAT Amount that can be refunded is 2.000 TL.
With the Presidential Decree No. 6775, the minimum amount that taxpayers can request a refund for transactions that give rise to the right of return has been determined as TL 2,000 to be applied to transactions made as of 1.2.2023.(Circular No. 31.01.2023/26).
In this context, taxpayers may request a refund arising from transactions that give rise to the right of return.
The taxpayers will declare a refund in the relevant period declarations, including the taxation periods with amounts below 2.000 TL, and will request a refund for these amounts. However, the tax offices will not evaluate the refund requests below 2.000 TL in this taxation period, but will evaluate them together with the refund requests in the following taxation periods.
If the taxpayers have refund requests arising from different transactions that give rise to the right of return in the same taxation period, the refund amounts in this period are taken into consideration together in determining the amount that can be requested for refund. If the total refund request amount exceeds the minimum refund amount of 2.000 TL, the taxpayer’s refund request in this period is evaluated. If the total refund request amount is below the minimum refund amount, it is not possible to evaluate the taxpayer’s refund request in this period, and it is possible to evaluate the refund request by considering this refund request amount together with the refund request amounts in the following periods. In this case, it is natural that the total refund amount, including the refund request amount in the following taxation period, must exceed the minimum refund amount of 2.000 TL.
2) 2023 Exception for the Association of European Football Associations (UEFA) Champions League Final Competition
With the Law No. 7431, the provisional article 40 of the Value Added Tax Law has been amended and applied to the 2019 UEFA Super Cup Final and UEFA Champions League Final competitions;
- Union of European Football Associations (UEFA),
- Participating football clubs
- Legal entities involved in the organization
The exemption for deliveries of goods and rendering of services to those whose place of business, legal and business center is not located in Turkey, and their deliveries of goods and rendering of services for these competitions was made applicable for the 2023 Union of European Football Associations (UEFA) Champions League Final.
Communiqué Serial No. 46 amended the Value Added Tax General Implementation Communiqué in line with this amendment.
3) Some Services Received by PTT A.Ş. will be Subject to VAT Withholding within the Scope of Labor Supply Service.
The following paragraph has been added to the end of the section numbered (I/C-2.1.3.2.5.2.) of the Value Added Tax General Implementation Communiqué.
“PTT A.Ş. for the fulfillment of postal affairs of PTT A.Ş; collection, loading, sorting, dispatching and processing of shipments, acceptance of shipments from the address, packaging, measurement, weighing and registration procedures, group / address sorting of all registered / unregistered shipments to be distributed, loading and unloading of all registered / unregistered shipments to be distributed, distribution and delivery of shipments, collection of fees for collected shipments, delivery of collected fees to the Administration, deduction of delivered or undeliverable shipments in the distribution area or at the workplace and similar service purchases are subject to withholding under this section. ”
Thus, the above-mentioned services received by PTT A.Ş. for postal works will be subject to VAT withholding.
The relevant Press release is available here.
Sincerely,
BİLGENER
