WHAT IS THE LIMIT ON VAT CUT?
If every transaction within the scope of limited cut doesn’t exceed 1.000 TL, calculated vat will not be subject to cut. If it exceed the limit, cut will be practiced on the whole amount.
In the transaction exceeding detected amount, the amount will not be separated into pieces in order not to be liable to vat cut, on the other hand, total amount of the same amounts will be taken into account and if the limit is exceeded, cut will be practiced.
In order not to be subject to vat cut, there can be more than one invoices issued. If this situation is detected, necessary transactions will be carried out by the tax Office.
Accordingly;
1–Amount in the invoice issued according to the service provided monthly in low limit account with vat will be taken into account for the services provided step by step in the taxation period.
2- If an institution provide services in accordance with the public finance management and control law numbered 5018; they will be evaluated for each maintenance period. Maintenance services without periodicity will not be subject to cut if they don’t exceed 1000 TL including vat.
However, if it exceed 1000 TL with vat, it will subject to the cut.
3- If contact is issued for the manufacturing of a specific amount of commodity, service charge with vat amount will be taken into account over the low limit of the cut.
However, if the amount is separated into parts and more than one invoice is issued, it is obvious in the law that necessary transactions will be carried out.
On the other hand, vat calculated on the delivery and services within the scope of limited cut procedure will not subject to cut no matter which situation of the buyers in. (Excluding, the services and the delivery provided by professional sports club)
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Source: VAT Law
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