Turkey VAT updates
Thu 8th Mar 2018
Turkey has proposed a range of changes to its VAT law, including:
- VAT credits will be paid within 12 months or 3 months if they cannot be offset against output VAT due. Any outstanding VAT due to taxpayers will be paid down by the end of 2018. There will also be the right to interest payable to the tax payer on delayed credit refunds.
- The following supplies to be exempted from VAT: capital assets used for research and development activities; customs boned warehouse services; health services provided to non-residents; and certain gaming software.
- The introduction of simplified, turnover-based VAT declarations for small businesses.
- Extension of the VAT due date from 1 month to 2 months after the reporting period for smaller businesses.
- VAT groups for businesses with 50%+ partnership trade.
- The right to deduct input VAT suffered on certain expenditure, including: public education and related expenditure; certain spend by companies in technology zones; and supplies to food banks.
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