DRAFT LAW AMENDING THE VALUE-ADDED TAX LAW AND SOME OTHER LAWS AND STATUTORY DECREES PROVIDES TAX RETURN TO TAXPAYERS
- Draft Law Amending the Value-Added Tax Law and Some Other Laws and Statutory Decrees is submitted to the Turkish Grand National Assembly (TGNA) on 28.02.2018.
- In case this draft is adopted by TGNA and enters into force, the regulation prohibiting the return of VAT, which was transferred to next term, shall be abolished, and in case such VAT cannot be deducted from the tax payers tax obligations within twelve months, it will be returned to the taxpayer. It will also be possible to lower the 12 months period to 3 months under certain conditions.
- VAT exceptions will be provided for R&D activities, for machines and equipment purchases related to innovation and for design activities, and for the game software created in technological development areas.
- Goods and services which are exempted from VAT will be expanded and it will be included the goods and services obtained for the construction of schools, health institutions, student dormitories, kindergartens, orphanage asylums, old age asylums, caring and rehabilitation centers, sanctuaries, non-formal religious education institutions, youth centers and scout camps which are donated to public establishments and institutions.
- The companies, which are in a partnership relationship with each other for 50 percent or more and the economic enterprises of public institutions, shall be able to give combined VAT-Return declarations.
- VAT basis for construction works in return for land shares will be narrowed and land owners who give their land-shares to contractors, will pay VAT only for the residences and workplaces which they acquire in return of this transfer.
- VAT assessment base will be determined as the remaining amount after deduction of purchase price for delivery of premises and vehicles, which are purchased from non-taxpayers and was not changed characteristically by who trades second hand premises and vehicles.