Corporate Tax (Kurumlar Vergisi):
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- The cooperative benefits from a corporate tax exemption because its operations involve internal transactions only. However, starting from a certain date, the cooperative has engaged in external transactions (outside of cooperative members), which creates a tax obligation.
- According to Article 4 of the Corporate Tax Law, cooperatives conducting external transactions are considered to have formed a separate economic entity, subject to corporate tax.
- As per the 2018 amendment, cooperatives that engage in external transactions must establish corporate tax liability for the economic enterprise related to these transactions. Internal transactions remain tax-exempt.
Value Added Tax (VAT):
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- The cooperative is already subject to VAT for internal transactions.
- VAT obligations remain unchanged by the shift to external transactions, and the cooperative must continue reporting both internal and external transactions under the cooperative’s VAT number.
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Ba-Bs Forms (Tax Procedure Law):
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- Cooperatives exempt from corporate tax are not required to submit Ba-Bs forms, which are used to report specific purchase and sale transactions. However, if a cooperative is involved in external transactions and subject to corporate tax via a separate economic entity, Ba-Bs forms must be submitted for that entity.
- If the cooperative loses its tax-exempt status, it must file these forms from the period when the exemption ended.
Cash Register (Payment Recording Devices):
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- Economic enterprises linked to the cooperative must use new-generation cash registers for their transactions.
- If documents are issued under the cooperative’s name, cash registers must also be registered under the cooperative’s name.
The conclusion is that the cooperative’s external activities have triggered additional tax responsibilities, including corporate tax and reporting obligations for the economic enterprise. These measures do not affect internal cooperative operations, which remain tax-exempt.
Source: Revenue Administration
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