Turkey’s Revenue Administration has announced the publication of Communiqué No. 41 in the Official Gazette, which includes amendments to the General Communiqué on the Application of VAT (the VAT Communiqué).
One of the main amendments is the addition of a new section for optional full VAT withholding (reverse charge) in respect of services and deliveries that are subject to partial withholding as specified under Sections 2.1.3.2. and 2.1.3.3. of the VAT Communiqué, with certain exceptions. The new section provides that a buyer may enter into a contract with a seller for a period of one year, providing that the buyer is responsible for withholding, declaring, and paying VAT in full on transactions with the seller. Such contacts may be subsequently extended. This option is provided in relation to situations where a seller is subject to special provisions (principles) due to non-compliance, such as issuing false or misleading documents, failing to submit returns and other required documents, etc. In such situations, the buyer may be held jointly liable, even if they have declared and paid the partially withheld VAT for which they are responsible. To avoid this, buyers may elect the full VAT withholding option.
Source Orbitax
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