Vat Refund

The Turkish tax system levies value added tax on the supply and the importation of goods and services. The Turkish name for Value Added Tax is Katma Değer Vergisi , abbreviated to KDV.

Liability for VAT arises, when a person or entity performs commercial, industrial, agricultural or independent professional activities within Turkey or when goods or services are imported into Turkey .

According to the Turkish VAT Law , some businesses like supply of sea, air and railway transportation for business purposes and supplies related to maintenance and repair of such is exempt from VAT with credit for previously paid VAT under the principles of VAT mechanism. Under this mechanism, VAT is calculated and paid to the related tax office by the company, and then, with the help from tax-and-industry-focused professionals provide the so-called Sworn Financial Advisory Report and certification of VAT refund. After that the company can treat this VAT as input VAT according to this report and can offset or refund it in the same month.

Furthermore the VAT burden on exports is also completely relieved by the credit and refund mechanism but export deliveries are not only exempt from VAT, but also the input VAT paid is credited and the excess amount is refunded.

With LEGAL ‘s experience and expertise, we can also help you on the other issues related to VAT like inward and outward processing system, which enables exports to supply materials for production of their exports, without being subject to customs taxes, including VAT.

Our VAT Refund group provides a quality and fast service to help companies with their VAT refund claims. Our team of dedicated professionals with the VAT group assures our clients the most reliable and efficient service including the cross-checking of the companies required for the full certification.