The delivery of iron-steel products were included in the VAT declaration system with the 4/10 portion of VAT declared as the liability of the purchaser, however the companies traded in BIST (Borsa İstanbul A.Ş.) were excluded from this regulation. (VAT Communiqué no.41.) This rate is increased to 5/10 and companies traded in BIST are included in the system with the Communiqué no.43 as of 01.11.2022.
Currently, letters of guarantee issued by banks are used in the VAT refund applications. Insurance guarantee bonds can also be used starting with the date 01.11.2022.
VAT amounts declared by the responsible entities with the VAT no:2 declaration, can be subtracted/offsetted in the VAT no:1 declaration. However, if this VAT is declared after the legal deadline, this VAT can be subtracted/offsetted with the VAT no:1 declaration of the payment period at the earliest.