VAT Exemption in Construction Donations – Statement of VAT Exemption
Yayınlayan: Sefa KATIRCI
English, Financial Consultancy
Statement of VAT Exemption
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.