TURKEY: COVID-19 VAT IMPLICATIONS

Apr 7, 2020 | COVID-19

TURKEY – update 03rd August

Turkey VAT reduction from 18 to 8% due to Covid-19 til end of year for events & Conferences

31 Jul – VAT has been reduced to 8% from 18% until 31 December 2020 on the following: events and conferences; cultural events; domestic repairs; accomodation services; hospitality services

24 April – all other businesses (see sector exceptions below) may delay Value Added Tax payments and filings for the months of February and March, or Q1 2020. The new filing deadline is 28 April instead of 24 April.

9 April update – goods intended for export enjoy VAT payment deferrment for the exporters purchasing them (to avoid VAT credits). This deferment period has been extended.

The dealine for the upload of electronic ledgers and books has been moved from 31 March to 30 April 2020.

The Turkish tax office on 24 March introduced VAT payment reliefs in addition to last week’s measuers. Several sectors will have their VAT returns for April, May and June delayed until 27 July 2020. VAT payments for April to June are delayed six months out to October to December.

The sectors include: automotive; accomodation; cinema; heath; publishing; pubic exercise facilities; and professional services.

The Covid VAT measures already announced, in place until November, include:

  1. The VAT rate on airline travel is to be cut on domestic flights from 18% to 1%.
  2. Hotel accommodation and services are to be zero-rated.

Other measures include suspension of national insurance payments on employees.

 

Source Credit – Avalara

TURKEY – update 28th April

Apart from some exceptions, delay of VAT payments and filings for February and March, or Q1 2020

All other businesses (see sector exceptions below) may delay Value Added Tax payments and filings for the months of February and March, or Q1 2020. The new filing deadline is 28 April instead of 24 April.

 

Source Credit – Richard Asquith – (Avalara)

TURKEY – update 7th April

Turkey postpones submission deadlines of e-ledgers due to COVID-19

On March 26, 2020, TRA published an announcement that postpones the deadlines for submitting e-Ledgers and e-Ledger summary reports ( berats). While the impact of COVID-19 takes hold around the world, we’ve been watching the different governments adapt to accommodate changes to support businesses and their economies.  It is now Turkey’s turn.  

The General Communique No. 518 published on March 24 envisages that certain taxpayers, namely income taxpayers and corporate income taxpayers operating in certain sectors that are affected most, are in force majeure status between April 1, 2020, and June 30, 2020.  those taxpayers to submit their e-Ledgers and berats in July 2020. 

In short, where a taxpayer is obliged to pay income tax should, and should have submitted their e-Ledgers and berats for the December 2019 period by March 31, 2020, the new submission date is now July 2020. 

The new submission dates are as follows: 

  • for ledgers that belong to December 2019 period, the submission deadline is now July 2020
  • for ledgers that belong to January 2020 period, the submission deadline is now July 2020
  • for ledgers that belong to the February 2020 period, the submission deadline is July 2020
  • for ledgers that belong to March 2020 period, the submission deadline is July 2020

In addition to that, last week, there were other extensions on deadlines for tax declaration processes for different taxpayer groups Please visit TRA website for more information.

It is worth noting that at the time of going to press, the TRA has not made any amends to the go-live date for the new e-delivery note mandate for 1 July 2020. 

 

Source credit – Sovos

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