Communiqué No.50 Amendments to the VAT General Implementation Communiqué
Communiqué Serial No. 50 Amending the Value Added Tax General Implementation Communiqué was published in the Official Gazette dated 10.02.2024 and numbered 32456.
The amendments made by the Communiqué are summarized below:
1. SEEs have been added to the list of organizations obliged to make withholding tax within the scope of other services.
Value Added Tax General Implementation Communiqué (I/C-2.1.3.2.13.) regarding the services not listed in the previous sections of the Communiqué; Administrations, institutions and organizations within the scope of the tables attached to the Law No. 5018, public institutions and organizations established by law or Presidential Decree, revolving fund organizations, professional organizations in the nature of public institutions, banks, insurance, reinsurance and pension companies, It is regulated that VAT withholding at the rate of (5/10) will be applied by the said buyers (except for health services provided by health service providers and invoiced to the Social Security Institution) in all other services provided to pension and aid funds established by law or having legal personality and development agencies and not specifically specified in the Communiqué.
With the amendment made with Communiqué Serial No. 50, organizations obliged to withhold withholding within the scope of other services state-owned enterprises (state economic organizations, economic state enterprises) also added.
2. Partial Withholding Withholding Limit Linked to Invoice Issuance Limit.
In the section (I/C-2.1.3.4.4.1.) of the Value Added Tax General Implementation Communiqué; If the VAT-inclusive price of each transaction within the scope of partial withholding application does not exceed 2.000,00-TL, it is regulated that 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 to 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 not exceeding 6.900,00-TL including VAT for 2024, and if this amount is exceeded, withholding will be made over the entire amount.
3. Deduction of Withheld Taxes as Responsible is Conditional on Payment.
With the amendment made in Article 29 of the Value Added Tax Law No. 3065 with the Law No. 7491, it has been made possible to deduct the value added tax declared and paid with the title of responsible. Accordingly, VAT declared with the VAT declaration numbered 2 can only be deducted in the declaration numbered 1, provided that it is paid (Our Circular No. 30.12.2023/104).
Accordingly, the VAT withheld by those who are held responsible for withholding tax 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.
It will be possible to deduct the VAT declared in due time and paid in due time with the VAT Declaration No.2 of the same period given before the VAT Declaration No.1 of the period in which the withholding is made by the taxpayers, in the VAT Declaration No.1 of the period to which the VAT Declaration No.2 belongs.In case of partial payment, it will still be possible to deduct this part.
In addition, it is possible to pay the VAT declared and accrued with the VAT Declaration No.2 by offsetting the taxpayer’s refund receivable. In this case, the standard return request petition regarding the return request and the documents sought for the return must be complete and complete (including the CPA Report in the returns fulfilled according to the result of the YMM Report) and the taxation period for which the debt arising from the accrued VAT Declaration No.2 must be specified.
In this case, if the taxpayers have refund receivables from the previous period, we recommend that they first submit their VAT declaration No.2, request a set-off payment related to this declaration, and then deduct the tax paid by the taxpayers in their VAT declaration No.1.
4. Implementation Period of Delay Increase for Offset Refunds Arising from Withholding Tax has been Changed.
In the section (I/C-2.1.5.2.2.1.) of the Value Added Tax General Implementation Communiqué regulating the refund requests arising from withholding;
“In refund requests, tax offices, by making the necessary checks, notify the taxpayer in writing in case of detection of deficiencies in the content of the document or documents. The taxpayers who complete the deficiencies within 30 days from the date of notification of the letter, the tax inspection report, the YMM Report and the refund requests without collateral are fulfilled as of the date of submission of the offset petition to the tax office and no delay increase is applied to them. After the 30-day additional period, the offset requests of taxpayers who complete their deficiencies are fulfilled as of the date the deficiencies are completed and a delay increase is applied for the period from the due date of the debt until the date of offset.”
was included in the statement.
With the amendment made, the expression regarding the calculation of the delay increase has been amended as follows:
“The offset requests of the taxpayers who eliminate the deficiencies after the 30-day additional period 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. No delay increase is applied for the periods elapsed during the procedures carried out in the tax offices regarding this request.”
Accordingly, in the event that the deficiencies related to the refund requests are eliminated after the 30-day period, the period for calculating the delay increase will be from the notification of the deficiency letter to the date the deficiencies are eliminated. The time spent at the tax office will not be taken into account in the calculation of the delay increase.
The relevant Communiqué is available here.
Sincerely,
BİLGENER
