How tax refund is carried out ?
VAT Refund (input VAT) shown on invoices and similar documents related to the transactions which are exempt from the tax, such as:
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Exportation of goods and services,
Exemption in vehicles, precious metals and oil prospecting activities and national security expenditure and investments made under an investment incentive certificate (IIC),
Transit transportation,
Diplomatic exemption are deducted from the VAT (output VAT) to be calculated on the transactions of the taxpayer which are subject to VAT. In the absence of transactions subject to VAT, or if the output VAT is less than the input VAT, then the input VAT which cannot be deducted is refunded to those who perform such transactions, on the basis of principles to be determined by the Ministry of Finance. In 2015, 29.64% of the General Budget Tax Revenues comes from VAT (on imports and exports) and the total amount of tax revenues derived from VAT (on imports and exports) is 120.801.542.000 TL (Turkish Lira).
Source: The Republıc Of Turkey Mınıstry Of Fınance Revenue Administration
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