VAT STOPPAGE APPLÝED ÝN SURVEY, PLANS AND PROJECTS, AUDÝT AND CONSULTÝNG, AND SIMILAR SERVICES FOR BUSINESSES, AND PROBLEMS CAUSED BY IT

Abstract

Regulations regarding value-added-tax (VAT) withholding are made in communiques published pursuant to the Article 9 of VAT Act. In this context, the recent VAT General Communique which was published in the Official Gazette dated 26/4/2014 and came into force on 1st May, 2014 repealed all formerly published VAT General Communiques. There are two types of VAT withholdings which are partial VAT withholding and full VAT withholding. In full VAT withholding, whole tax witheld is declared and paid by buyers, while in parital VAT withholding, the tax is declared and paid by the buyer and seller or service provider partially. High VAT withholding rates applied in certain areas pursuant ot the VAT Act gives rise to some problems. In this work, problems experienced in VAT witholding and VAT refund applications are identified and some solutions to the problems are proposed.