EVALUATION OF THE EXCEPTIONS IN THE VALUE ADDED TAX THROUGH SAMPLE CASES AND ACCOUNTING RECORDS

Abstract

Provisions related to the value added tax applied as a spending tax in Turkey are regulated by the Value Added Tax Law No. 3065. There are various exceptional provisions in order to encourage taxpayers for economic and social reasons. The exception, which expresses certain restrictions on taxation, refers to transactions that are wholly or partly excluded from tax under certain conditions. Exceptions are stated in various provisions such as export, export-listed sales, purchase and sale of machinery equipment covered by the incentive and VAT law. However, contrary to the exemptions, the exception clauses which include the transactions which are excluded from the tax on the basis of the subject rather than the obligation may create various difficulties in implementation. This study examines exceptions to some specific issues within the frame of VAT law, communiqués and other legislative provisions and examines the mistakes that are encountered in practice and how to account these corrected issues.