Our company wants to pay an allowance for food and accommodation expenses of our staff who are sent abroad by duty. Since it is difficult to use a bank account abroad, we want to pay our staff in cash if possible. We kindly request your opinion on the matter.

Allowances are recognized as salaries. They must be paid through the bank. The employees open a currency account in Turkey and the allowances are deposited to those accounts. Employees withdraw the money from the bank and spend it via credit card.

Source: İSMMMO
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Is there vat in provided staff services?

Above-mentioned staff services are not liable to vat;

a) Food given to the staff in the work place
b) Accommodation provided to the staff
c) Transportation services provided to the staff with the aim of staff’s going and coming to the work place.
d) Staff clothing given as inventory stock.

Since these costs which are created for the business’ maintenance and parts of the added value in the business, are not liable to the vat practice during its supply to the staff. The tax came out in the acquiring of these commodities and services can be discounted.

Source:3065-Vat Law/Legislation and Vat Implementatıon general communique

Ali KARAKUŞ,
04.08.2017,
İstanbul

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.