Partial Withholding Tax Application Limit Fixed to Invoice Issuance Limit
In the section (I/C-2.1.3.4.4.1.) of the Value Added Tax General Implementation Communiqué; It is regulated that if the VAT inclusive price of each transaction within the scope of partial withholding application does not exceed 2.000,00-TL, the calculated VAT will not be subject to withholding and if the limit is exceeded, withholding will be made over the entire amount.
In the Communiqué Serial No. 50 on the Amendment of the Value Added Tax General Implementation Communiqué published in the Official Gazette dated 10.02.2024 and numbered 32456, the limit in question has been changed as “the invoice issuance limit determined according to Article 232 of the Tax Procedure Law No. 213 for the year in which the transaction is made”.
Accordingly, no withholding will be made for transactions which are not exceeding 6.900,00-TL including VAT for 2024, and if this amount is exceeded, withholding will be made over the entire amount.
You can access the relevant Communiqué here.
Best Regards,
BILGENER