Turkish VAT Refund Pre-Calculation (Exempt Supplies)

Input VAT on fully VAT-exempt supplies such as exports that cannot be offset may be refunded (Turkish VAT Law art. 32). Under the general logic of the VAT General Application Communiqué the refundable VAT is the input VAT attributable to exempt supplies, capped at exempt sales × the standard VAT rate; the refund that can be claimed is the lower of the refundable VAT and the VAT carried forward in the period.