KDV Genel Uygulama Tebliğinde Değişiklik Yapılması – İngilizce Versiyonu

  Sirküler No: 2021 / 35

Tarih: 18.02.2021

In the Official Gazette dated 16.02.2021 and numbered 31397, the "Communiqué on Amending the Value Added Tax General Implementation Communiqué Serial No. 35" was published and the regulations made are given below.

Addition to Buyers Specified in VAT Withholding

Those obliged to apply partial VAT withholding to the services they receive are classified into two groups in the Communiqué.

If the services listed in the below table are rendered to these organizations and enterprises, the organizations receiving the service must apply VAT withholding. The 1st and 2nd  groups are specified as follows;


1st  Group: VAT taxpayers 

2nd Group: Specified purchasers

• Administrations, organizations and enterprises, special provincial administrations and associations thereof, associations constituted of municipalities and associations delivering service to villages as presented in the schedules attached to the Law No 5018,
• Public organizations and enterprises founded under law, except the abovementioned entities.
• Enterprises with working capital.
• Professional organizations in the nature of public institution,
• Retirement and aid funds founded under law or bearing a legal entity,
• Banks,
• Public economic enterprises,
• Organizations within the scope of privatization,
• Organized industrial zones and all exchanges including stock exchanges and futures exchanges,
• Institutions, organizations and enterprises whose shares of more than half are directly owned (alone or together) by the abovementioned administrations, organizations and enterprises,
• Companies whose shares are traded in Istanbul Stock Exchange,
• Development and Investment Agencies (however, parent-teacher associations and family medicine institutions affiliated   to the Minister of Health are not included)  

With the mentioned Communiqué, the following purchasers have been added to the 2^nd group.

• Insurance and reinsurance companies,
• Trade unions and their higher organizations,
• Foundation universities,
• Mobile electronic communications operators,

Arrangement in VAT Withholding

The regulations are given in the table below as before and after.

 

VAT Refund for Transactions Subject to VAT Withholding

The VAT declared by the buyer with the VAT Declaration No. 2 is required to be paid for the fulfillment of the refund requests regarding the transactions subject to VAT withholding.

Mention regulations will be applied as of 01.03.2021.


Kind Regards.