Are Services Export Subject to VAT in Turkey?

MuhasebeNews — Wed, 25 Apr 2018 12:00:57 +0000

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

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Are Real Estates That in possession of Company’s Assets More Than 2 Years Subject to VAT in Turkey?

MuhasebeNews — Thu, 23 Mar 2017 07:00:13 +0000

ARE REAL ESTATES THAT IN POSSESSION OF COMPANY’S ASSETS MORE THAN 2 YEARS SUBJECT TO VAT IN TURKEY?
According to article 17/4-r of VATA, the handover process of real estates, which have been in possession of company’s assets or municipalities or provincial special administrations at least for 2 years, are exempt from VAT.

With regard to that law, the handover process of immovable (premises, terrain, structure), which have been in possession of company’s assets or municipalities or provincial special administrations at least for 2 years, are also exempt from VAT. If these properties are sold at an auction, there will be exceptions.

Nevertheless, exception clauses are not within the scope of institutions that buy and sell these properties because of commercial reasons. Municipalities and provincial special administrations that buy and sell these properties because of commercial reasons cannot take an advantage of those exceptions.

Source: Value Added Tax Act

VATA – Muhasebe News

Are Services Export Subject to VAT in Turkey?

Are Real Estates That in possession of Company’s Assets More Than 2 Years Subject to VAT in Turkey?