Home Tax WHAT IS THE LIMIT ON VAT CUT?

WHAT IS THE LIMIT ON VAT CUT?

991
0

WHAT IS THE LIMIT ON VAT CUT?

If every transaction within the scope of limited cut doesn’t exceed 1.000 TL, calculated vat will not be subject to cut. If it exceed the limit, cut will be practiced on the whole amount.

In the transaction exceeding detected amount, the amount will not be separated into pieces in order not to be liable to vat cut, on the other hand, total amount of the same amounts will be taken into account and if the limit is exceeded, cut will be practiced.

In order not to be subject to vat cut, there can be more than one invoices issued. If this situation is detected, necessary transactions will be carried out by the tax Office.

Accordingly;
1Amount in the invoice issued according to the service provided monthly in low limit account with vat will be taken into account for the services provided step by step in the taxation period.

2- If an institution provide services in accordance with the public finance management and control law numbered 5018; they will be evaluated for each maintenance period. Maintenance services without periodicity will not be subject to cut if they don’t exceed 1000 TL including vat.

However, if it exceed 1000 TL with vat, it will subject to the cut.


3- If contact is issued for the manufacturing of a specific amount of commodity, service charge with vat amount will be taken into account over the low limit of the cut.

However, if the amount is separated into parts and more than one invoice is issued, it is obvious in the law that necessary transactions will be carried out.

On the other hand, vat calculated on the delivery and services within the scope of limited cut procedure will not subject to cut no matter which situation of the buyers in. (Excluding, the services and the delivery provided by professional sports club)

____________________________________________________________

Source: VAT Law
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.

Previous articleWHERE DO FOREIGN SOCIAL INSURANTS DWELLING ON IN TURKEY PERMANENTYLY OR TEMPORARLILIY,  SUBMIT THEIR INSURANCE FORUMULARY?
Next articleThe ones subject to the partial vat cut on 5/10 rate

LEAVE A REPLY

Please enter your comment!
Please enter your name here