Changes to VAT1, VAT2, VAT2B and VAT9015 Declaration
The Revenue Administration has made changes to VAT1, VAT2, VAT2B and VAT9015 declarations and published an announcement regarding these changes.
As it will be remembered, with the VAT Communiqué Serial No.41 published in the Official Gazette dated 21/4/2022, in summary;
- In the export of goods made by manufacturers, it has been made possible to receive a refund according to the export price,
- Optional full withholding tax has been introduced,
- The delivery of iron and steel products is included in the scope of VAT withholding.
In line with these amendments, the Revenue Administration has made the following adjustments to VAT2, VAT2B and VAT9015 declarations. Taxpayers are required to update their Declaration Editing Programs.
1)Amendments to the VAT Declaration No:
A- Amendments to the Tax Base
- “Transactions with Discretionary Full Withholding Tax” table has been added to the “Base” tab and the “Transaction Type” list has been edited by defining a new code as shown below.
The “Transaction Type” selective field 627 “Delivery of Iron-Steel Products [VATGUT-(I/C-2.1.3.3.3.8)]” code was added to the “Transactions with Partial Withholding” table in the “Base” tab and the withholding rate was arranged to be 4/10.
In the “Transactions with Partial Withholding Tax” table in the “Transactions with Partial Withholding Tax” tab in the “Transaction Type” selective field, the phrase Iron Steel was added to the 618 code description and the transaction type name was updated as “Delivery of Copper, Zinc, Iron Steel, Aluminum and Lead Ingot Except Those Obtained from Scrap Metal [VATGUT-(I/C-2.1.3.3.1)]”.
B- Amendments to the Exemptions – Other Refundable Transactions Section
- The “Transactions within the Scope of Optional Full Withholding Tax” table has been added to the “Exemptions-Other Transactions Eligible for Refund” tab and the “Transaction Type” list has been organized by defining a new code as shown below.
- The code 448 “Delivery of Iron and Steel Products [VATGUT-(I/C-2.1.3.3.3.8)]” has been added to the “Transaction Type” field in the “Other Transactions Generating the Right to Refund” table in the “Exceptions-Other Transactions Generating the Right to Refund” tab.
- The 418 code description in the same table has been updated as “Delivery of Copper, Zinc, Iron and Steel, Aluminum and Lead Ingot Except Those Obtained from Scrap Metal [VATGUT-(I/C-2.1.3.3.3.1)]”.
- The code 338 “Goods Exports of Manufacturers [VATGUT-(II/A-1.1.1.4.2)]” has been added to the “Transactions within the Scope of Full Exception” table of the “Exemptions-Other Transactions Generating the Right to Refund” tab.
- The column “Cost of Goods Procured without VAT” has been added to the same table. When data entry is made to code 338, the amount entered in the “VAT Charged” field should not exceed the amount “(Delivery and Service Amount – Cost of Goods Supplied without VAT Payment) * 0.10)”.
- The “Cost of Goods Supplied without Paying VAT” column will only be active for taxpayers who will enter information using codes 301, 322 and 338; It will appear in the declaration as passive for taxpayers who enter information using other codes.
C- Amendments to the Annexes
- The name of the “Notification of Transactions within the Scope of Partial Withholding Tax” tab in the Annexes tab has been changed to “Notification of Transactions within the Scope of Withholding Tax” and the “Notification of Transactions within the Scope of Optional Full Withholding Tax” table has been added as a second table to the content of the tab.
- A new column named “VAT Amount Deducted Through Line Number 107” has been added to the “Period of VAT Receivable Deducted Through Line Number 107” section in the “Notifications for 107 and 111 Coded Discount Types” table.
2) Changes to VAT2, VAT2B and VAT9015 Declarations
A- Changes in the Tax Notification Area
- In the “Tax Notification” tab, the “Notification for Transactions with Discretionary Full Withholding Tax” table has been added and the “Transaction Type” list has been edited by defining a new code as shown above.
- The “Transaction Type” selective field 227 “Delivery of Iron-Steel Products [VATGUT-(I/C-2.1.3.3.3.8)]” code was added to the “Transactions with Partial Withholding” table and the withholding rate was arranged to be 4/10.
– The type name has been updated as “Delivery of Copper, Zinc, Iron Steel, Aluminum and Lead Ingot, Except Those Obtained from Scrap Metal [VATGUT-(I/C-2.1.3.3.3.1)]” by adding the phrase Iron Steel to the 218 code description in the “Transaction Type” selective field in the “Transactions with Partial Withholding” table.
B- Amendments to the Annexes
- “Notification of Transactions within the Scope of Optional Full Withholding Tax” table has been added.
You can find the related announcement here.
