What You Need to Know About Tax Refund in Turkey
VAT (Value Added Tax) refund is a tax application that allows businesses to recover the VAT they pay on the goods and services they receive, under certain conditions. Businesses operating in Turkey can ensure that the tax burden is reduced and cash flow is regulated through VAT refund. In this article, we will present the basics for those who want to learn more about this topic.
What is VAT Refund?
With this application, businesses can recover the VAT they have paid as much as the amount subject to these transactions as a result of exceptional methods such as exporting goods and services, carrying out international transportation, and performing deliveries and services subject to a reduced tax rate. In this way, the VAT burden of businesses is reduced and their cash flow is regulated.
How to Get a VAT Refund?
In order to receive a VAT refund, certain conditions must be met. Businesses must follow the steps below to refund VAT:
- VAT Refund Application: Businesses apply for a VAT refund every month or every quarter in order to receive a VAT refund. The application can be made to the Revenue Administration (GİB) electronically or directly.
- Preparation of Documents: The necessary documents must be prepared for the VAT refund application. These documents include documents related to purchase and sale such as invoices, receipts, waybills, customs exit declarations. It is important that the documents are arranged correctly and completely.
- VAT Refund Control: The Revenue Administration examines the application and checks the documents. If there are errors or omissions in the documents, businesses may be asked to correct or supplement them.
- VAT Refund: After the application and documents are examined, the Revenue Administration refunds the VAT to the enterprises. The refunded amount is calculated based on the amount of VAT declared by the business.
Things to Consider:
- The VAT refund application must be submitted within a certain period. If the applications are not made within the specified periods, refund requests may be deemed invalid.
- It is important that the documents are properly and completely arranged. Incorrect or incomplete documents may result in the rejection of the refund request.
- Businesses must be taxpayers and file VAT returns regularly in order to receive a VAT refund.
Result
VAT refund is a tax application used to recover the VAT paid by businesses. Businesses operating in Turkey can reduce their tax burden and regulate their cash flows. However, in order to receive a VAT refund, certain conditions must be met and the correct documents must be submitted. Businesses can obtain detailed information about the VAT refund process from the website of the Revenue Administration.
