Method Change with CPA Report for VAT Refund Requests
With the publication of the Communique No. 46 in the Official Gazette dated 01.04.2023, amendments have been made to the sections of the General Application Communique on Value Added Tax (VAT) that regulate “Offset VAT Refund Requests on Withholding Taxable Transactions” (I/C-2.1.5.2.1) and “Cash VAT Refund Requests” (I/C-2.1.5.2.2).
As known:
- Cleaning, garden, and environmental maintenance services,
- Maintenance, repair, and modification services for machinery, equipment, fixed assets, and vehicles,
- All types of catering and organization services,
- Study, planning-project, consultancy, auditing, and similar services,
- Outsourced textile and clothing work, outsourced shoe and bag sewing work, and brokerage services for outsourcing work,
- Building inspection services,
- Transportation services,
- All types of printing and publishing services,
- Commercial advertising services,
- Labor supply services,
- Customer finding/bringing services for tourist shops
These services are subject to partial withholding tax. Previously, VAT offset refund requests exceeding 10,000 TL for these services were processed with a tax inspection report.
Cash refund requests for these services were processed exclusively with collateral or a tax inspection report, and if collateral was provided equal to the total refund request, the collateral was resolved based solely on the tax inspection report.
With the amendment made by Communique No. 46, the following changes have been made:
- In the event the taxpayer has a full audit agreement for the year in which the refund-generating transaction occurred, offset refund requests for these services can now be processed with a report from a Certified Public Accountant (YMM).
- Similarly, if the taxpayer has a full audit agreement for the year in which the refund-generating transaction occurred, cash refund requests for these services can be processed with a YMM report, or collateral equal to the total refund request can be resolved with a YMM report.
You can access the relevant Communique here.
Sincerely,
BİLGENER
