What is VAT Refund?
Value Added Tax Refund, also known as VAT refund is a specific tax refund method that covers a large scale of commercial enterprises and offers great financial opportunities for corporations and individuals though it does not receive enough consideration. We have prepared for you those who are curious about the VAT refund process, which helps to recover some of the VAT paid to the government. You can call our Ankara, Istanbul and Izmir centres to get more detailed information about VAT refunds and to take advantage of this opportunity.
The Value Added Tax, which was first introduced in 1984, is the consumer who takes the service or product as a responsibility. The business that pays the consumer VAT on behalf of the government to the government can in some cases recover some of it from the government. This situation is also called a VAT refund. Since businesses do not have clear information about these transactions made in the last months of the year, they often ask questions such as what is VAT refund and how to get a VAT refund.
Value Added Tax Refund Service
Value Added Tax Refund is expressed as an incentive and exceptional situation that taxpayers offer to the government. Added tax purposes to eliminate tax on non-consumers with a set discount and after-sales inclusive mechanism. It is aimed to reduce the tax paid from the tax collected in the producer and distributor chain and to avoid taxes. Thus, the tax burden is lifted from the end consumers.
VAT refund is not valid in various situations. Some types of activities do not apply VAT or are performed at a very low level in the sale of services and goods. In this case, sellers do not reflect VAT in the purchase and sale transaction realized in the previous stage. In this case, the tax in question remains with the sellers. In some cases, buyers do not have to pay part of the VAT due to legal obligations. At this point, the tax must be deposited with the tax office. With the emergence of such situations, the concept of VAT refund emerges.
VAT refund, which is an opportunity offered by the government for taxpayers, can also be called an incentive. The manufacturer or seller subtracts the tax paid from the tax collectors and ensures that there is no tax on the company. In this way, it aims to protect the tax burden on the final consumer. In some cases, the VAT rate may not be at all, and in some cases, it may be very low. In such cases, the seller cannot reflect the VAT to the buyer and the tax is removed from the seller. In some cases, the buyer cannot pay a part of the Value Added Tax to the seller with his legal obligations and has to pay it to the tax office. In such cases, VAT refund comes into play. According to the legislation, the main transactions that give rise to the right of return are as follows;
- Export exception,
- Precious mineral exploration business,
- Port and airport search business,
- International transport,
- Transport via pipelines,
- Oil exploration,
- Investment goods with incentive certificates,
- Delivery of vehicles for the disabled.
Who Can Get VAT Refund?
VAT refunds can be made to institutions and persons exporting services and goods. It is possible for them to receive VAT if the goods or services to be made abroad are performed in accordance with the law. In some special cases, the Ministry of Finance gives taxpayers the right to withhold VAT in order to guarantee their tax receivables.
You can call AG Audit to get professional support in the VAT refund process that can be obtained by exporters of goods and services. VAT refund does not cover every service or every industry. Industries and transactions are specified in the law. You can call us to get detailed information about these sectors.
In Which Circumstances Does the Right to VAT Refund Occur?
There are some situations where the right to VAT refund arises. These situations are generally as follows.
- Export exception,
- International transport,
- Delivery of vehicles for the disabled,
- Port and airport search business,
- Pipeline transport,
- Precious mineral exploration business,
- Oil exploration,
- Investment goods with incentive certificate.
Required Documents for VAT Refund
There are some necessary documents for the VAT refund to take place. According to law no. 3065, the documents in the return request are generally as follows.
- Return cancellation petition
- List of sales and service invoices
- Customs declaration
- Uploaded VAT tax list
- VAT list of the period the export was realized
- VAT calculation table whose refund has been accepted
- VAT list related to the transaction arising from your right to return
- List of VAT for the period in which exceptions were declared
- A copy of the exemption document from the tax office
