Matters to be Considered in VAT Returns Related to Places Declared as Force Majeure
With the publication of Circular No. 45 in the Official Gazette No. 32115 on 25.02.2023, amendments have been made to the Value Added Tax General Application Communiqué, with provisions concerning the fulfillment of VAT refund requests from taxpayers during the force majeure period due to the earthquake.
As is known, the Ministry of Treasury and Finance previously declared a force majeure in the provinces affected by the earthquake in Kahramanmaraş, including Adana, Adıyaman, Diyarbakır, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye, Şanlıurfa, and Elazığ, as well as in the Gürün district of Sivas.
Accordingly, taxpayers registered in the areas declared under force majeure as of 06.02.2023 were considered to be under force majeure for the period from 06.02.2023 to 31.07.2023, and deadlines for submitting tax returns and notifications that should have been submitted during this period were extended.
According to the mentioned Circular, whether under force majeure or not, taxpayers can request VAT refunds if the relevant tax returns are submitted, and the VAT amounts requested for refund are shown in these returns.
Fulfillment of Offset Refund Requests
1)
If no issues are found in the control report generated by the KDVIRA system and the checks conducted by the tax office, the offset refund request will be fulfilled according to the general provisions.
2)
If issues arise due to taxpayers (including sub-taxpayers) failing to submit VAT returns or Ba-Bs notifications because of the force majeure, the refund of the corresponding portion will be made as follows:
- For taxpayers holding an HİS certificate, 12.5% of the amount will be refunded.
- For taxpayers holding an İTUS certificate, 25% of the amount will be refunded.
- For taxpayers without an HİS or İTUS certificate, if no audit report or guarantee is required, 50% of the amount will be refunded. If an audit report, tax examination report, or guarantee is required, 120% of the amount will be refunded.
3)
If the issues identified in the control report and checks by the tax office are not related to force majeure, the offset refund request will be processed according to general provisions.
Furthermore, after the force majeure period ends, the KDVIRA system will re-query and generate a report for refund requests based on the provisions in this section. VAT refund requests for the periods under force majeure will be processed by the tax authorities according to general provisions based on this report.
Fulfillment of Cash Refund Requests
1)
If no issues are found in the control report generated by the KDVIRA system and the checks conducted by the tax office, the cash refund request will be fulfilled in accordance with general provisions.
2)
If issues arise due to taxpayers (including sub-taxpayers) failing to submit VAT returns or Ba-Bs notifications because of the force majeure, the corresponding portion of the refund will be processed as follows:
- For taxpayers holding an HİS certificate, 30% of the amount will be refunded.
- For taxpayers holding an İTUS certificate, 60% of the amount will be refunded.
- For taxpayers without an HİS or İTUS certificate, if no audit report or guarantee is required, 120% of the amount will be refunded.
3)
If issues identified in the control report and checks by the tax office are not related to force majeure, the cash refund request will be processed according to general provisions.
You can access the relevant Circular here.
Sincerely,
BİLGENER
