VAT refund is regulated in the Value Added Tax Law (3065) Article 32 et seq.; It is the right of the taxpayer to receive a refund of the deferred VAT, especially in export, investment incentive and transactions subject to a reduced rate.
Situations Where Refund May Be Requested
- Export (VAT Article 11)
- Discounted rate sales (Art.29/2)
- Transactions subject to exception (Art.13, 14, 15)
- Scope of investment incentive certificate (Art.13/d)
Process
- Refund request petition attached to the annual / monthly declaration
- Tax office examination (CPA report if necessary)
- Offset or cash refund decision
Council of State 4th Chamber Approach
The 4th Chamber of the Council of State emphasizes that in case of delay in the VAT refund, "delay interest" must be paid to the taxpayer, and that the administration's delay of the refund under the excuse of continuous review constitutes a "service defect".
VAT return filings require knowledge of technical tax legislation; Work with tax law lawyer.