Pursuant to KDV legislation, delivery of goods and services in Turkey subject to VAT, while some cases listed in the Articles 11, 12, 13, 14 of VAT Act (Exports of Goods and Services, Export registered sales, Sales with investment incentive certificates and other provisions) have been exempted from KDV. Some of these exception articles are included in the scope of partial exceptions and some of them full. A refund is stipulated in the Article 32 of VAT Act for the part of the VAT incurred for the deliveries included in the scope of full exemption that cannot be compensated with a discount.
In addition, in the sales of some goods and services for which VAT rates are reduced, VAT differences incurred by sales VAT amounts due to the fact that they are discounted sales may be subject to refunds. Sales from residential construction, and production and sales of textiles and staple food are typical examples of this.
Another issue is the return of the deductible VAT amount arising from sales subject to withholding and that the taxpayer cannot pay with the calculated VAT. VAT withholding refund in construction works may be an example of it.
After confirming the accuracy of the discounts and obligation lists of the taxpayers who have requested a VAT refund, we submit the VAT refund report to the tax office, following the counter-examinations, and we provide the taxpayer with a refund of the VAT in cash or on the account.
