Significant changes have been made in Law No. 7104 Amending Value Added Tax Law and Some Laws and Decree Law No. 178 published in the Official Gazette No. 30383 dated 06.04. You can find the full text of the law here. To mention these changes; – The delivery of the land by the land owners to the contractors and the deliveries of the residences or workplaces by the contractors to the land owners are accepted as delivery. If the land owner is not a taxpayer, the expense note to be prepared by the contractor will be equal to the amount corresponding to the land share of the contractor. The amount of the residence or workplace left by the contractor to the land owner will be calculated on the basis of the cost value, which is in the second place in m.267/II of the VUK. These provisions will be applied for the deliveries to be made after 06/04/2018.
– In sales made through auction, the taxpayer is the tax organizer.
– With the new regulation, the tax paid to the Treasury, which is calculated excessively or improperly and paid to the Treasury, is returned to the seller on the condition that the seller returns it to the buyer. For this, the declarations must be corrected by the buyer and the seller and the KDV in question must be paid to the buyer first.
– As of 01/06/2018, deliveries to duty-free shops or their warehouses are considered export deliveries and are now exempt from KDV. – In cases exempted from KDV, as of 01/06/2018, “Deliveries to those who will donate to the construction of schools and similar places, health services to be provided to foreigners who are not settled in Turkey, deliveries of new machinery and equipment to those engaged in R&D innovation and design activities in areas specified in special laws, to be used only in these activities, transformation of ordinary partnerships into capital companies , scraps emerging in apparel (apparel) businesses, game software” has been added.
– Taxpayers engaged in the trade of second-hand motor land vehicles or real estate as of 01/06/2018; In the event that he sells second-hand motor land vehicles and immovable properties without making any significant changes in the characteristics of non-KDV taxpayers, he will pay KDV on the remaining amount after the purchase price is deducted. – In Article 29 of the KDV Law, taxes that taxpayers can deduct from calculated KDV for some activities, unless otherwise provided, are regulated. With the new amendment made in this article, KDV incurred due to discounts or expenses incurred after the taxation period in which the delivery and service is realized, due to deliveries and services subject to reduced rates, may also be included in the refund account. If the transferred KDV cannot be recovered by discount for 12 months, it must be claimed within the following 6 months. – In another regulation made in the same article, the right to deduction in KDV has been increased to 2 years. As of 01/01/2019, the right of deduction can be used until the end of the calendar year in the calendar year in which the taxable event occurred.
-– Account and declared KDV related to the receivables that have become worthless according to VUK m.322 can be deducted in the taxation period in which the receivable is written off. This issue, which is frequently discussed in practice, has been clarified with the new regulation.
– All of the KDV on depreciable economic assets that are lost or delivered within the scope of the exemption after completing their useful life determined by the Ministry of Finance will be able to be deducted. However, in the KDV incurred on depreciable economic assets that are lost before completing their useful life or delivered within the scope of the exemption, the portion corresponding to the period used can be deducted.
– As of 01/01/2019, a time limit has been set for refunds to be requested, and the non-deductible KDV regarding the exempted transactions has been made the subject of the refund, provided that it is requested until the end of the second calendar year following the period in which the transaction took place. The Ministry of Finance has been authorized regarding the procedures and principles of debiting and returning the KDV that is not requested within the prescribed period and is transferred to the next period. The authority of the Ministry of Finance is based on criteria such as the period of liability, the number of employees, the size of assets and equity, the amount of taxes paid, whether tax duties are fulfilled on time, whether there are negative reports or detections about issuing or using false or misleading documents in terms of content. tax compliance levels and determining different refund methods according to these compliance levels, determining the tax debts from which the refund receivables will be deducted and other procedures and principles regarding the refund. As of 01/01/2019, in the returns arising from the export transactions made by the manufacturers, it has been authorized to make refunds up to a certain percentage of the export value in terms of sectors, instead of the KDV charged.
– In the 38th article of the regulation, a completely new regulation has been introduced with the effective date of 01/01/2019. According to this; Those whose commercial income is determined on the basis of the operating account basis and those whose professional income is determined according to the self-employment earnings book, within the scope of the sector and occupational groups determined by the Council of Ministers, on the request of those who are within the scope of the taxable transactions (including the value added tax), the Council of Ministers. KDV will be paid at the rate determined by the The sales revenue of taxpayers who will be covered by this regulation will not exceed 380.000.-TL for 2018.
– As of 01/01/2019, those who keep books according to the business account will be able to make payments until the end of the second month following the month in which they submitted their returns. The Ministry of Finance has been authorized for this 2-month postponement opportunity.
– Taxpayers operating in technology development zones and specialized technology development zones will be subject to KDV deduction for their deliveries within the scope of exemption.
– The review period for KDV refunds to be made by tax inspectors has been determined as 3 months, to be applied in the examinations to be made regarding the taxation periods after 01/01/2019. If this period is not sufficient, an additional period of 2 months may be granted.
– Ministry of Finance, authorized independent accountant and financial advisors, on condition that they are limited to the period in which they signed their declarations and to the taxpayers, to have a report that will form the basis for the refund to be made within the scope of the KDV Law, the qualifications and conditions to be sought in the financial advisors who will issue a report in this context, the types of returns that can be issued and the maximum refund amounts. It is authorized to determine the procedures and principles regarding determination and implementation. Financial advisors will be held jointly and severally liable for the reports they will prepare in this way, as is the case with certified public accountants. In addition, a separate unit will be established in order to make KDV refunds faster and healthier.
– With the temporary article added to the KDV Law with the 17th article of the regulation, it is aimed to eliminate the transferred KDV accumulated in the past in the form of refund or reduction of the KDV to be paid. The Ministry of Finance has been authorized to determine the procedures and principles regarding this.
– If the tax that is required to be refunded in accordance with the KDV Law is not returned within 3 months, an interest payment at the rate of deferred interest will be on the agenda, provided that all information and documents regarding the refund are completed.
– Those who establish liability as a group company will be jointly and severally liable for the payment of the tax.
You can contact us for more detailed information and assistance about these changes.