Statute of Limitations for VAT Refund Requests
Summary: The Communiqué on the Amendment to the VAT General Implementation Communiqué Serial No. 23, which includes explanations regarding the implementation of the “restrictive legal regulation on VAT refund receivables and the duration of VAT refund requests” made in the Value Added Tax Law No. 3065 with Law No. 7104, was published in the Official Gazette dated 15.02.2019 and numbered 30687, and the VAT refund request periods were rearranged as follows.
The regulations introduced by the Communiqué are summarized as follows.
Return Request Period for Transactions Subject to Reduced Rate:
In the VAT General Implementation Communiqué; it is stated that the annual refund request should be made with the VAT declaration belonging to the January period of the following year and to be submitted in February, and with the VAT declaration belonging to the November period and to be submitted in December.
According to the relevant provisions, the annual VAT refund requests arising from the transactions subject to the reduced rate must be submitted through the system by showing the return in the VAT declaration until December 26, 2021, when the VAT declaration for the November period of 2021 will be submitted at the latest, (including those who show it in the declarations of the previous period) until 31.12.2021, other documents other than the CPA Report and the return request petitions. In the returns requested with the Certified Public Accountant VAT Refund Certification Report in accordance with these periods, the said CPA Report must be submitted within six months from the end of the year following the year in which the transaction subject to the reduced rate was realized. If the CPA Report is not submitted within this period, the refund request is immediately referred for examination.
Return Request Period for Transactions within the Scope of Full Exception:
According to Article 32 of the Law No. 3065, the refund request must be made until the end of the second calendar year following the period in which the transaction giving rise to the right of return is realized.
Accordingly, the taxpayers who will request a refund regarding the transactions within the scope of the full exemption included in the 32nd article of the Law and the provisional articles must fill in the VAT column related to the exemption in the relevant period declarations until the end of the second calendar year following the period in which the transaction subject to the exemption took place and apply to the tax offices with the documents listed in the relevant sections of the Communiqué for their refund requests (including collateral in returns requested with collateral) together with the standard refund request petition within this period at the latest. In the returns requested with the Certified Public Accountant VAT Refund Certification Report in accordance with these periods, the said Certified Public Accountant Report must be submitted within six months from the end of the second calendar year following the end of the period in which the transaction subject to the exemption was realized. If the CPA Report is not submitted within this period, the refund request is immediately referred for examination.
After the expiration of the return request period, it is not possible to request a refund by submitting a correction declaration for the past periods and/or by submitting a standard return request petition and related documents.
Return Request Period for Transactions with Partial Withholding Tax:
Taxpayers are required to declare their refund requests regarding the transactions subject to partial withholding within the scope of Article 9 of the VAT Law in the VAT area subject to refund in the relevant period declarations until the end of the second calendar year following the period in which the transaction subject to withholding is realized and to apply to the tax offices with the documents listed in the relevant sections of the Communiqué for their refund requests (including collateral for refunds requested with collateral) together with the standard refund request petition within this period at the latest. In the returns requested with the Certified Public Accountant VAT Return Certification Report, the said Certified Public Accountant Report must be submitted within six months from the end of the second calendar year following the period in which the transaction subject to withholding is realized. If the CPA Report is not submitted within this period, the refund request is immediately referred for examination.
After the expiration of the return request period, it is not possible to request a refund by submitting a correction declaration for the past periods and/or by submitting a standard return request petition and related documents.
Sincerely,
BİLGENER
