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VAT Discount on Retail Sales

Yayınlayan: Sefa KATIRCI
Kategori: English, Financial Consultancy
Retail Sale - Guven CPA
Retail Sale – Guven CPA

Implementation of VAT Discount on Expenses Made With Retail Sales Slip

According to special notice (Consumption Tax Law dated 04.04.2018 and numbered 3904472-130 E.333687; ) by Istanbul Tax Office about VAT Discount on Retail Sales;

The issue is about paying by retail sales vouchers for goods and service costs (food items) that are purchased by your company for consumption at the workplace and that do not exceed the cost of issuing invoices, and for goods and service costs that the company employees have purchased on business trips (meals, parking, bread, drinks). It is requested whether it is possible to use the recorder device receipts as expense documents. In addition, an opinion was requested on whether the value-added tax amount could be subject to discount.

Let’s examine the Article 232 of the Tax Procedure Law no 213:
  • First and second class traders,
  • The earnings are determined by simple procedure,
  • The farmers who are obliged to keep the notebook
  • They are obliged to issue and receive invoices for their commodities or their works.

VAT Law No. 3065; Let’s take a look at article 29/1-a. There are invoices and similar documents issued by the taxpayers for their delivery and services. It is stated in this document that VAT may be subject to discount unless there is a provision contrary to this law.

Provided that they are related to the acquisition and maintenance of commercial income.The tax shall be placed on the receipts of stationery, office and cleaning costs purchased for use at the work place and consumed, the retail sales or payment recorder device receipts for water, food expenses. For that issue, discount is possible.

However, food, accommodation and travel expenses, parking and hospitality expenses of the company employees should be certified by the invoice. Then, it could be considered as an expense in the determination of corporate income.

Therefore, it is obligatory to issue invoices to be considered as expense in the determination of corporate income by the various expenses made by company personnel in business travel. It is foreseen that the VAT amounts included in the retail sales slips and cash register slips for the expenditures in question are not possible to be subject to a reduction in accordance with the Article 30 / d of the VAT Law, as expense, cost or legally unacceptable expense according to the nature of the transaction.