Refund requests for transactions subject to reduced rate in 2017 should be made with the VAT return of November at the latest.

VAT General Implementation Communique indicates that the portion of VAT refund receivables arising from the transactions subject to reduced rate which is not refunded during the year will be refunded in cash or on account within the following year depending on the taxpayer’s will. The Communique indicates that the refund request should be made through the VAT return of January in the following year to be submitted in February at the earliest and VAT return of November that will be submitted in December at the latest.

Accordingly, the final application date to request VAT refunds arising from the transactions subject to reduced rate performed within the calendar year 2017 is the 24 December 2018 Monday which is the last day to submit the VAT return of Nov/2018 period. The refund request should be made with the VAT return of Nov/2018 period.

Taxpayers failing to request for refunds until that date lose their rights.