Public economic organizations and state economic enterprises will be able to withhold VAT

Public economic organizations and state economic enterprises will be able to withhold VAT

The Communiqué on Amendments to the Value Added Tax General Implementation Communiqué prepared by the Ministry of Treasury and Finance was published in the Official Gazette.

With the communiqué, regulations were made regarding organizations that can withhold VAT.

A legal regulation was published regarding the payment of a portion of the VAT amount to be paid to the seller by the buyer directly by the buyer as “responsible”, by declaring it to the state as the “responsible” state, which held the state responsible for tax deductions within the scope of combating informality. In the notification, explanations and examples on the subject were included.


While public economic enterprises established by law were included in the scope of those applying a 5/10 VAT withholding on all service purchases that were not specifically listed in the relevant communiqué, there were hesitations regarding those that were not directly established by law. In order to eliminate these hesitations, public economic institutions and state economic enterprises were also allowed to make withholdings, just like public economic enterprises.

“On the other hand, the 2 thousand lira limit applied for each transaction in the partial withholding application was determined as the invoice issuance limit, which is updated every year in accordance with the Tax Procedure Law. “Within the framework of the court decision, explanations regarding the calculation method of late payment interest for tax debts in taxpayers’ requests for offset against VAT refund receivables for their tax debts were also included in the notification.

The communiqué also included corrections regarding the legal regulations made for the extension of the duration of the exemptions included in the temporary 20th, temporary 29th, temporary 32nd and temporary 33rd articles of the VAT Law.

In some articles of the communiqué, the effective date was determined as today, and in others it was determined as the beginning of March.

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