What is vat cut?
1- Is guarantying vat collection the purpose? Yes.According to the legislation number 3065, article number 9/1, unless the taxpayer has the residence, workplace, registered office and business center in Turkey, and if necessary to secure the tax payment of ministry of finance, the taxpayers will be held responsible for paying tax.
2- Is cut necessary for the ones who are not in Turkey? No.The article who are issued to secure the tax payment is not only for those whose residence, workplace, registered office and business center in Turkey. If necessary, Ministry of Finance is able to take the taxpayers responsible for paying.
3- Who is responsible for cutting?
People who accepted the operations in the article are the ones who are customers or providers of the commodities. Those will be responsible for paying cut tax and for the other home works regarding tax. In the scope of practicing vat cut, the customers will declare and pay the decided amount tax on the basis of tax declaration number 2. The customers can reduce the tax payment on the vat declaration number 1 since they paid the amount in of tax declaration number 2.
4- Is tax cut optional?
Vat cut is not an unprompted practice and it is necessary for buyers to tax cut tax according to ministry of health. On the other hand, tax cut is not possible for the operations which are not in the scope of vat cut according to the ministry of finance.
5- What is complete vat cut and what is partial vat cut?
The vat cut practice is the declaration and payment of the tax of the service charge by the ones who are exposed to these services but not for the ones who provide those services. “Complete vat cut” is paying tax calculated on the basis of service charge, by the ones who are exposed to the services, while “partial vat cut” , paying calculated tax by the ministry of finance and the rest amount of the tax is paid by the ones who provided services.
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