Export-Registered VAT Refund MethodsPursuant to Article (11/1-c) of Law No. 3065, VAT on goods delivered to manufacturers for export is not paid by exporters. Manufacturers can benefit from this application.
Sellers who qualify as “manufacturers” can benefit from the deferral-cancellation application.
Requirements for becoming a manufacturer
- Industrial Registry certificate,
- Farmer registration certificate obtained from the Ministry of Food, Agriculture and Livestock (for those working in this sector),
- Food Business registration certificate and Food Business Approval certificate (Producer Certificate)
- Registration with the relevant professional chamber,
- Products specified in the Capacity Report (sufficient personnel and infrastructure to manufacture these products are required)
Even if the seller is a manufacturer, products not specified in the capacity report cannot be sold for export.
Products not specified in the capacity report cannot be sold with export registration, even if the company is a manufacturer. Only products that are manufactured by the company and specified in the capacity report can be sold with export registration.
Duration of Sales with Export Registration
If the goods in question are exported within three months from the beginning of the month following the date of delivery to the exporter, the deferred tax shall be waived. If the export cannot be completed within three months due to force majeure or unforeseen circumstances, exporters who apply within fifteen days from the date of expiry of the three-month period may be granted an additional period of up to three months.
Refund Methods for Sales with Export Registration
The amount of tax to be deferred cannot exceed the amount of tax calculated based on the taxpayer’s deliveries with export registration. However, if the amount of tax payable by the taxpayer is less than the amount of tax calculated based on deliveries with export registration, this amount shall be taken as the basis. If there is a portion of the VAT calculated on the delivery price with export registration that cannot be deferred, this portion is refunded to the manufacturing taxpayer.
VAT Refund Methods for Export Registration
Standard refund application form, One-time (Industry Registry Certificate, Capacity Report, activity certificate obtained from the professional chamber), photocopy of the manufacturer’s and exporter’s invoice, Customs Exit Declaration and its attachments, commitment letter obtained from the exporter (if the manufacturer’s name, product name, and quantity are not specified in the Customs Exit Declaration, this commitment letter is filled out. Otherwise, it is not required.) It is submitted as an attachment to the petition. On the Revenue Administration’s website, when applying for a VAT refund, the invoice information related to the sale with export registration, the information related to the Customs Exit Declaration, the Capacity Report Approval Date, and the Capacity Report Approval Number must be entered into the system.
It can be carried out with VAT refunds by deduction and in cash. With VAT refunds with export registration, which is a different method, the VAT refund can be recovered through a deduction starting from the date of export. As stated in Section IV/D-1 of the VAT Application Circular, VAT refunds can be made by adding the earliest [ ] period in which the export took place or the column to be deducted for this period in the declaration following this period to the tax office, along with the documents mentioned above, stating that the VAT refund arising from these documents will be deducted.
Note:
All VAT Refund Requests Any type of refund arising from VAT must be requested by the end of the second year following the refund request period.
For example, if a taxpayer’s VAT refund is calculated in the January 2024 period and their VAT refund is also calculated in the July 2024 period, the final application date is December 31, 2026, which is valid for both periods.
Consequently, the final application date for taxpayers with a VAT refund related to the 2023 accounting period is December 31, 2025.
Applications made after these dates are RED and transferred to the treasury.
For more information about export-registered VAT refund processes and professional support, please contact us.
For detailed consulting services, you can reach us at Ozbekcpa.
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