Understanding Non-Deductible VAT in Turkey: Rules, Scenarios, and Documentation Requirements

• Businesses can deduct VAT on purchases if properly documented.
• Legal rules limit which VAT can be deducted, affecting declarations and taxes.
• VAT cannot be deducted from retail receipts unless recorded in official books.
• VAT on resale or business use requires a proper invoice.
• VAT inclusive price tags allow deduction through internal calculation.
• Court-disputed invoices allow deduction after case resolution if recorded correctly.
• Late or missing tax returns allow deduction if paid within the same year.
• Specific cases like partial withholding, loss, or theft have special rules.
• Non-deductible VAT includes improperly invoiced, personal use, or special items.
• Non-deductible VAT must be recorded as a business expense or cost.
• Accurate documentation and understanding rules are crucial for correct VAT reporting.

Source: fiscal-requirements.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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