Indirect taxes include various taxes such as value added tax, special consumption tax, stamp duty, special communication tax and customs duties. Because of their nature, indirect taxes can have significant impacts on cash flow and costs of entities. While these taxes are important for all kinds of entities, they are particularly vital for enterprises that are mainly engaged in transactions subject to value added tax and special consumption tax. 

With the tax policies they apply, countries aim to keep their tax incomes at maximum level. For the realization of tax income at desired levels, certain criteria should be fulfilled such as applying tax rates at reasonable levels. Indirect taxes have become an important factor for deriving tax income in recent years.

VAT, SCT and other indirect taxes directly affect the supply chain and financial system of the enterprise. As real time and timely management of these taxes is required, they may lead to difficulties in tax functions. Cash flow of these taxes which are mostly invisible may have important impacts on the absolute costs and risks.

EY renders compliance audit and advisory services on Indirect Taxes.

In this respect, by sharing their knowledge and ideas, our indirect tax professionals provide a seamless and consistent service, find effective solutions for various issues, and render information and advisory services required for managing indirect taxes.

EY renders advisory services for indirect tax practices related to new and complicated transactions and goods; for developing reports related to indirect tax, controlling the costs and ensuring that indirect taxes are managed accurately; and advisory services for detecting and applying exemptions and exceptions within the scope of local legislation.

In our services, our aim is to play an active role in the decisions of our clients to be taken with regard to indirect taxes through our advisory services provided in a timely manner and through effective management of the impacts of indirect taxes on the financial statements and operations of our clients.

As EY indirect tax team, we provide support for determination of the risk and sustainable planning opportunities for indirect taxes during the life cycle of tax. We provide effective solutions to our clients for improving daily reporting procedures related to indirect taxes, decreasing the evaluation mistakes, minimizing cost and ensuring appropriate management of indirect taxes.

We can support partial or whole compliance of indirect taxes and foreign loan provision process, determine the best partial exemption method and review the accounting systems.

Our globally integrated teams provide you with the appropriate point of view and support for effective management of the indirect taxes. That is how EY makes difference.

Ultimate purpose of our services is to meet your priorities and needs. Furthermore, general framework of our services is provided below as per tax types and subjects.

VAT Advisory Services

• Evaluating risks and opportunities in transactions in terms of VAT,
• Reviewing calculations of tax base, VAT to be deducted and calculated VAT,
• Evaluating the rates applied in transactions,
• Reviewing and evaluating full and partial exemption practices,
• Reviewing free of charge delivery practices,
• Reviewing production and supply chain in terms of order of documents, and
• Providing services for establishment of optimum function system in incorporations and restructuring of companies

SCT Advisory Services

• Providing SCT services having vital importance for companies operating in tobacco, alcohol beverage, while appliances, automotive, petroleum and gas sectors,
• Reviewing SCT calculations during transaction process,
• Reviewing exemption practices, and
• Reviewing postponement and cancellation practice

Other Indirect Tax Advisory Services

• Evaluating risks and opportunities and reviewing processes in special consumption tax practices,
• Tax base calculations, exemption practices and risk and opportunity assessments in stamp duty,
• Reviewing transactions performed within free zones,
• Reviewing transactions performed within Technology Development Regions,
• Advisory services in foreign activities,
• Reviewing indirect tax burden of the company in company mergers and acquisitions, and
• Providing advisory services in incorporations and restructuring of companies.