Tax refund in Turkey can be complex, especially for foreign investors conducting international trade transactions. There are various exceptions and mechanisms available for tax refunds and deductions, each with different criteria and requirements. The Value Added Tax Law and VAT General Application Communique regulate VAT payments, exceptions, and tax refund procedures. The Domestic Processing Regime is a tax exemption provided to local manufacturers who import raw materials or intermediary products required for production of goods. Taxpayers can claim tax refunds in cash directly from customs through this mechanism. The liability and responsibility to pay VATs rest on the party issuing the invoice in a standard sale transaction.
Source Mondaq
