Turkey has announced a range of changes to Value Added Tax
arrangements. Notable changes include clarification that overpaid
tax during exports will not be refunded, tax obligations become
suspended during force majeure events, as well as international
organizations being exempt from Value Added Tax for goods or
services in certain circumstances.
The Communique on Amendments to the Communique on General
Implementation of Value Added Tax No. 6 ("Communique")
was published in Official Gazette number 29718 on 21 May 2016 and
entered into effect on the same date.
The key points of the Communique include declarations that:
If a taxpayer overpays tax during exports, despite being
entitled to request a discount, overpaid tax will not be refunded,
nor any corrections made. This also applies to tax paid on goods or
services procured from a foreign country.
If a taxpayer is subject to force majeure, tax assignment will
be delayed until the force majeure ends. Partial stoppage
procedures are also delayed until the end of a force majeure.
Withholding tax procedures will not apply to wood and forestry
products by exporters, or parties which create products via
procurements from the administration, official institutions and
organizations, as part of the attached sheets in the Public Finance
Management and Control Law numbered 5018.
International organizations and their subsidiaries are exempt
from value added tax for goods or services which are:
For official use by an international organizations or its
Intended for social and economic purposes,
Without charge, or
For administrative staff who are not Turkish citizens, during
the term of office in Turkey.
Please see this link for full text of the
Communique (only available in Turkish).
Information first published in the
MA | Gazette, a fortnightly legal update newsletter produced by
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