TAX NEWS NO: 2016/6
Jun 01, 2016
No VAT correction will be required in case of decreases in VAT base as a result of credit notes received from the entities resident abroad.
Amendments have been made to the VAT General Implementation Communique with the Communique No. 6 promulgated in the Official Gazette on May 21, 2016.
As per the previous tax rulings given by Revenue Administration, in case credit notes were issued by the entities resident abroad, the importers were expected to treat the relevant VAT as both input VAT and Additional VAT at the same time on VAT returns.
However, being effective from the date 21.05.2016 on which Communique No.6 entered into force, no VAT corrections on the VAT return (i.e. treating the VAT pertaining to credit notes issued by the entities resident abroad as input VAT and additional VAT) are required. The approach of the Revenue Administration is also applicable in cases of transfer pricing adjustments made as a result of disguised profit distribution through transfer pricing.
Additionally, reverse charge VAT declarations made in connection with service imports (including intangible rights payments) are also in the scope of relevant application.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
These materials and the information contained herein are provided by Deloitte Turkey and are-intended to provide general information on a particular subject or subjects and are not on exhaustive treatment of such subject(s).
Accordingly, the information in these materials is not intended to constitute accounting, tax, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect your personal finances or business, you consult a qualified professional adviser.
These materials and the information contained therein are provided as is, and Deloitte Turkey makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, Deloitte Turkey does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality.
Deloitte Turkey expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security and accuracy.
Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk off loss resulting from the use thereof. Deloitte Turkey will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statue, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein.
© 2016 Deloitte Global Services Limited