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Service Export
Regulations regarding service export are made by the Ministry of Treasury and Finance. These regulations are included under the title of “Export Exception” in the VAT Law No. 3065 and the communiqué published based on it. Accordingly, for a service to be considered exported and
exempt from VAT; the service must be made for a customer abroad and the service must be used abroad. The fact that the service is provided for a customer abroad is proved by an invoice or similar document issued on behalf of the customer abroad. What is meant by “using the service abroad” is that the service rendered in Turkey for the customer abroad is related to the customer’s business, transactions and activities abroad; It has nothing to do with its activities in Turkey. Services provided to free zones from Turkey are not considered within the scope of service exports. Some examples of tax exemption in service exports are given below:
Example 1: Taxpayer (Z) Mühendislik Ltd. in Turkey. Şti. has drawn a textile factory project to be built in Jordan for this company in accordance with the agreement it has made with a company located in Jordan and has collected the price for it. This service is exempt from VAT within the scope of service exports, and firm (Z) does not calculate VAT on the invoice it will issue.
Example 2: Company (A) operating in Turkey acted as an intermediary for a company located in Germany in the procurement of textile products purchased by this company from Turkey and received a commission fee. This brokerage service of company (A) is exempt from VAT within the scope of service export.
When you apply to your tax office to get the tax refund you are entitled to for exporting services, some documents will be requested from you, such as:
Standard return request petition,
Service invoice or list,
Payment document (document proving that the currency was brought to Turkey, bank receipt, etc.),
VAT list to be deducted for the period in which service exports are declared,
Uploaded VAT list,
Refund Requested VAT Calculation Table
You can find out which current and exact documents will be requested from you by contacting your tax office. You can obtain more detailed and up-to-date information on service exports and tax refunds in service exports from the Ministry of Treasury and Finance and your tax office.