Certain amendments to the Value Added Tax (VAT) Law were introduced through the Law no.7104 published in the Official Gazette dated 6 April 2018. One of those amendments was ensuring the deduction right to be exercised until the end of the calendar year following the calendar year in which the taxable event occurred, which was performed by changing the 3rd clause within Article 29 of the VAT Law arranging tax deductions.
The relevant parts of VAT General Implementation Communique have been amended through the Communique series no.23 published in the Official Gazette dated 15 Feb 2019 and particularly the above regulation enacted as of 1 Jan 2019, sampled explanations have been made regarding the amendments to the VAT Law performed through the Law no.7104.
The hesitation about the implementation date of the above regulation was removed by this way. Accordingly, in the period that the documents for procurement of goods and services related to 2018 calendar year (taxable event occurring in 2018) were entered into the books provided that 2019 calendar year is not exceeded, VAT amounts indicated in these documents may be subject to deduction.
The aforementioned Communique contains arrangements on transactions subject to reduced rates, transactions within the scope of full exemption and refund request periods regarding the transactions with partial withholding as well.
VAT Communique series no. 23 has been enacted as of its publication date (15 Feb 2019).