The Recovery of the input VAT related to VAT exempt deliveries (Investment Incentive Certificate)

Documentation Required

In the further stages of the VAT refund claim below documents should be submitted to the tax office;

- List and the invoices related to the VAT exempt deliveries,
- Input VAT list (which shows the input VAT amount burdened related to the VAT exempt deliveries) according to the circular no:53 of the VAT law, this circular should include the invoice information of every single item within the input VAT list,
- The investment incentive certificate of contract owner (certificate owner should give its approval in the relevant section of the global list, indicating that these items have been purchased)  
- A letter which should be taken by contract owner from its tax office indicating the company is registered in the tax office and the VAT exemption has been granted to contract owner related to the IIC.
Additional documents and information not mentioned above can always be requested by the tax office.

Execution of the refund

1-Credit from Tax or social security payable
2-Cash refund

Credit method:

There is no need to submit a letter of guarantee or a sworn financial advisor (SFA) report,
submitting the above mentioned documents are enough for refunding through credit method. (The documents and information should be complete)

Cash refunding:

The refundable VAT amount up to 4.000TL will be given by the tax office after the completion of the above mentioned documents,

for the exceeding amounts there are two ways, through a SFA report or through a letter of guarantee,

The SFA report will prepared by the relevant tax advisor or SFA working for the company.

The preparation of the report may take 1 to 3 month depending on the quality of the documents provided, and the response of the confirmations to be sent to the suppliers of your company.

Also a letter of guarantee can be given for the cash refunding in order to accelerate the process, but due to the fact that this letter of guarantee will be released with the above mentioned SFA report the report will be necessary again.

For all types of refunding routes the documents mentioned above in the "Documentation" section should be completely submitted to the tax office.