- The new Turkish tax law, Omnibus Law 7491, has made significant changes to the VAT reverse charge mechanism.
- Taxpayers can no longer deduct withheld VAT from their output VAT unless they have paid the VAT due and must submit their VAT declarations by specific deadlines.
- The law also requires withheld VAT amounts to be remitted to the tax office before they can be shown as input VAT.
- This change increases the total VAT due for taxpayers.
- Additionally, unpaid VAT-2 amounts can be deducted from the corporate income tax base, but adjustments are required when payment is eventually made.
Source Serdar Tasdoken
