What is VAT Refund?

What is VAT Refund?

For VAT, which is a tax type based on reflection practices, VAT refund may be requested when it is not reflected in the account. For example, some companies sell products with higher VAT rates to the consumer at a lower VAT rate. In this case, the relevant companies have the right to demand the VAT rate that they do not reflect to the consumer. Apart from that, service or export of goods also creates the right to VAT refund. However, export-based businesses or companies cannot request VAT refunds for their sales abroad. These firms can only process for the refund of the VAT rate they are unable to collect or charge.

How to VAT Returns?

VAT refund transactions are made within the framework of laws based on Value Added Tax. There are hundreds of notifications regarding the VAT law. In order to avoid confusion due to the number of communiqués, a series of communiqués was published in 2014 under the name of VAT General Communiqué. Considering the contents of this communiqué, you can complete Value Added Tax return transactions in accordance with the legal framework. You can also submit your Value Added Tax refund request electronically. It is possible for VAT taxpayers to make their return transactions through the Internet Tax Office. By entering your user code and password into the system, you can complete the transactions such as Information Entry, Income-Corporate Tax Return Request, e-Declaration, Inquiries and Petition without going to the tax office. You can easily manage these transactions from a single center using the VAT refund program. It is also possible to follow multiple VAT refund processes through Oditta Management Systems.

What are the Documents Required for VAT Returns?

For each Value Added Tax refund, separate documents are requested according to the transaction type. In accordance with the law numbered 3065, you must forward the following documents to the tax office for VAT refund:

• VAT refund request petition determined as standard
• List of service or sales invoices
• Added Value Added Tax List
• VAT calculation table that you request refund
• VAT list to be deducted for the period for which you declared the export
• Customs list or declaration
• A copy of the exemption document that you can get from the tax office
• A monthly chart showing the annual return amount