The speed of the refund process depends largely on the quality of the file. A file in which the calculation is correct, the documents complete and the records consistent results in less additional correspondence with the tax office. We prepare your refund claims from start to finish under Value Added Tax Law No. 3065 and the related communiqués.
Types of refund
- Export supplies and supplies with export registration: refund of the VAT incurred on exported goods.
- Export of services: services provided to customers abroad and used outside Turkey.
- Supplies subject to a reduced rate: refund of the VAT that accumulates because the sales rate is lower than the purchase rate.
- Transactions subject to VAT withholding: the refund receivable arising for the seller on sales where the buyer declares part of the VAT under the reverse-charge mechanism.
- Other exemptions: other exempt transactions for which the legislation grants a right to a refund.
What we do
- Calculating and checking the refund amount for the period in line with the statutory records and the legislation
- Preparing the lists of VAT incurred and the lists of sales invoices
- Submitting the refund request and its attachments through the tax administration's electronic system
- Checking in advance for adverse findings that may arise from your lower-tier suppliers
- Responding to deficiency letters from the tax office and following up the process
YMM report, guarantee and audit
Depending on the amount and type of the refund claim and the taxpayer's situation, the tax office may make the refund directly or may request a report by a sworn certified public accountant (YMM), a tax audit report or a guarantee. Claims below certain amounts can often be concluded without a report, while a YMM report may be required for claims above this limit. Since the limits and conditions are set by the legislation and updated from time to time, we determine before the application which route applies to your file.
Where a YMM report is required, we prepare in advance all the listings and documents the sworn certified public accountant preparing the report will need, and coordinate the process on your behalf.
What we need from you
The basic documents are customs declarations or documents relating to the export of services, sales and purchase invoices, the statutory book entries for the refund period and contracts relating to transactions subject to withholding. If we keep your accounts, we already have most of these documents. Since the refund receivable can also be offset against tax debts, we choose together the route that best suits your cash plan.
Correct monthly returns are a precondition for a refund; we therefore often handle refunds together with our tax returns and compliance service.
Who is it for?
- Manufacturers exporting directly or with export registration
- Companies providing services abroad
- Businesses selling goods subject to a reduced rate
- Contract manufacturers, subcontractors and suppliers making sales subject to VAT withholding
How does the process work?
- Step 1
Preliminary review
We identify the transactions giving rise to a refund right and calculate the refundable amount.
- Step 2
File preparation
We prepare the lists, documents and the refund request.
- Step 3
Application
We submit the claim electronically to the tax administration and, if required, start the YMM report or guarantee process.
- Step 4
Follow-up and outcome
We respond to deficiency letters and follow the refund through to payment in cash or by offset.
Frequently asked questions
How is a VAT refund obtained?
First, the VAT return for the period giving rise to the refund right is filed together with the refund amount. The refund request is then submitted electronically to the tax administration with the documents and lists specified in the legislation. After the tax office completes its checks, the refund is made in cash or by offset against tax debts.
How long does a VAT refund take?
The time depends on the type of refund, the amount claimed, whether a YMM report or a guarantee is required, and any deficiencies found in the tax office's checks. Files prepared completely and consistently generally conclude faster because they do not require additional correspondence. It would not be right to promise a fixed period; when you send us your details using the request a quote form, we share a realistic timeline based on your file.
Is a YMM report required for a VAT refund?
Not always. Refund claims below certain amounts can often be concluded without a YMM report; depending on the amount and type of refund, a YMM report, a tax audit report or a guarantee may be requested. Since the current limits are set by the legislation, we assess your specific claim.
Can I offset my refund receivable against my tax debt?
Yes. The VAT refund receivable can be offset against tax debts and, in some cases, social security premium debts within the conditions of the legislation. Offset requests may be subject to different document and control requirements than cash refunds.