What are the features of services export?
Services done in Turkey and provided in a foreign country for customers living abroad (the receiver whose residence, Office and business center is abroad and a local company whose agency, bureau, representation and branch are independently active in a foreign country) are exempt from VAT.
Services within the scope of exception in export;
1- The service in Turkey should be given for a customer living in a foreign country (the invoice should be issued on behalf of the customer living in a foreign country in order to certify that transaction).
2- It is compulsory to take advantage of the service abroad.
In accordance with the provisions of VATA and General Communiqué on VAT system application, services provided for customers living in a foreign country should be declared within the scope of exception in export before the amount is brought to Turkey as a foreign exchange, during the period when services are offered.
Nonetheless, if a person demands the return of the payment of taxes imposed concerning to abovementioned transactions and being not subject to discount, he/she should provide proof of payment ( a document which certify that the foreign exchange is brought to Turkey, bank receipt etc.).
Source: Value Added Tax Act
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