- The article examines disputes arising from Turkish VAT withholding (tevkifat), especially when the buyer files the 2nd VAT return (KDV-2) but does not actually pay the withheld tax.
- Tax authorities increasingly invoke Article 11 of the Tax Procedure Law to demand the unpaid withheld VAT from the seller, creating liability conflicts between buyer and seller.
- The article argues that VAT is intended to be neutral and ultimately borne by the consumer, and that withholding is a “tax security” mechanism that does not fit well with VAT’s core structure.
- It notes that Turkey’s VAT Law does not contain a direct standalone withholding rule; instead, the mechanism is based on Article 9/1, which allows the Ministry to hold transaction parties responsible to secure tax collection.
- The main legal issue analyzed is the extent of the seller’s responsibility when the buyer reports but fails to pay the withholding, in light of VAT deduction rules and recent court decisions on joint and several liability.
Source: alomaliye.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.
