- Value Added Tax (KDV) is a popular tax type due to its features such as realization in the short term, directing demand, and generating high revenue.
- A new regulation regarding ‘transferred KDV’ has been introduced recently.
- KDV has a unique discount mechanism where taxpayers can deduct the tax paid in each new production process from the tax of the new product or service.
- In some European countries, the cost of transferred KDV can be refunded, unlike in Turkey where it cannot be refunded.
- Due to high inflation, pressure from taxpayers, and the erosion of values in balance sheets, a new regulation was made to allow the deduction of transferred KDV within three years upon request.
- The new regulation limits the deduction of transferred KDV to five years, which is unfavorable for taxpayers.
- There is a discrepancy between the discount mechanism in KDV and the expense mechanism in Income and Corporate Taxes, creating challenges for taxpayers.
Source: alomaliye.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
