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VAT Exemption in Construction Donations – Statement of VAT Exemption

Yayınlayan: Sefa KATIRCI
Kategori: English, Financial Consultancy

Statement of VAT Exemption

Statement of VAT Exemption - Guven CPA
Statement of VAT Exemption – Guven CPA
1.1 Statement of Sellers to Donors
  • The delivery and services made within the scope of the exemption shall be declared in the footsteps of the VAT statement for the taxation period.
  • The statement of VAT exemption should be included in this periodic statement. It must be during the delivery and service is made.
  • The line that should be selected is VAT Exemptions – Transactions that Promote Right to Refund.
  • After that selection, the line named ” Works that are covered by full exemption” should be selected.
  • Then, the related statement is declared via code number 333.
  • The ‘Delivery and Service Amount’ column of this line is subject to the exception and the VAT excluded amount of the services are written.
  • The total VAT amount shown in the documents regarding purchases and services related to these delivery and services shall be recorded in the VAT column.
  • Taxpayers who do not want to request a refund must write ‘0’ in the VAT column.

After making a proper statement, the sellers of donors can request VAT-Refund. That refund can be earned with a Certified Public Accountant’s VAT-Refund report. The CPA analyzes the invoices and VAT paid for exempted works. Then s/he calculates the refund amount. Detailed VAT Refund policy can be found in next section.

1.2 Statement of the Donors Who Paid VAT Despite Exemption Certificate
  • Same procedures are followed as 1.1 until the code number.
  • The code number should be 444 for such donors.
  • Those who receive goods or services by paying VAT, but who do not have VAT liability, can request a refund.
  • This request is made by the petition of the facility that will be donated monthly for a standard return request.