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CONTINUED EXPORT and VAT REFUND

CONTINUED EXPORT and VAT REFUND

Consignment export according to the Export Regulation; It is expressed as sending goods to buyers abroad, brokers, branches or representative offices of the exporter abroad for final sale to be made later.

Taxpayers who will export consignment must make their applications to the General Secretariat of the relevant Exporters' Associations, and these applications can also be made by approving the declaration at the e-birlik[1] address.

Consignment export requests for goods within the scope of regulations that may be brought by the Ministry of Commerce in terms of substance and/or country policy are finalized directly by the General Secretariat of Exporters' Associations, after the opinion of the Ministry is received. Customs declarations approved as consignment exports by the General Secretariat of Exporters' Unions must be submitted to the customs administrations within thirty days.

Within thirty days after the final sale of the goods sent as consignment, the exporters notify the situation to the General Secretariat of the Exporters' Associations and the intermediary bank, together with the final sales invoice or sample issued by them and other necessary documents. The final sale of the goods sent as consignment must be made within one year from the date of export. This period may be extended for two more years by the General Secretariat of the Exporters' Associations, in case of application for just and compulsory reasons. The price of the goods sold in due time must be brought to the country within the framework of the foreign exchange legislation, and if it cannot be sold, the goods must be brought to the country within the framework of the customs legislation.

In consignment export transactions, since the final buyer of the goods, whether it will be sold or not and its price are not known at the time of export, the export exemption will be applied in the period when the final buyer is determined and an invoice is issued on behalf of this buyer. In other words, if the exporters export consignment goods, the export delivery will be declared not in the period when the goods pass the customs line, but in the period when the goods are sold abroad, and the return request will be made in this period.

Accordingly, if the consignment goods sent abroad by the exporter taxpayers (consignor) are sold by the broker or consignee, an invoice will be issued on their behalf within 7 days and code number 301 in the "Transactions Covered by Full Exception" table in the "Exceptions-Other Transactions Entitled to Refund" tab of the VAT declaration for the relevant period. must be declared using the transaction type line.

The cost of export delivery is entered in the "Delivery and Service Amount" column of this line. Since the actual export date, in other words the closing date of the customs declaration, is not known in consignment exports, the export price is determined by the T.R. It must be converted into TL at the Central Bank's foreign exchange buying rate.

The VAT amount included in the delivery within the scope of the exemption will be written in the column “Loaded VAT”. If the tax included in the delivery within the scope of the exception is not requested to be refunded by deduction or in cash, "0" is entered in the "VAT Charged" field.

On the other hand, within the scope of the 11/1-c article of the VAT Law, it is possible for the exporters to export the goods they purchased from the manufacturers as consignment without paying VAT within the scope of the deferment-cancellation system, and within 3 months from the beginning of the month following the delivery date of the goods delivered by the exporters ( or within the given additional period) on consignment, it is possible to take action within the framework of Article 11/1-c of the VAT Law, regardless of the date the said goods are sold abroad.

Therefore, since the delivery of the goods by the manufacturers to the exporter for export, a taxable event has occurred in terms of the transactions of the manufacturers, sending these goods to be exported abroad to be sold by consignment by the exporter will not change this situation. will be finalized and the goods will not be expected to be delivered to the final buyer abroad for the cancellation and return process.[2]

In summary, if the goods delivered by the manufacturers under export registration are exported by the exporters as consignment within 3 months from the beginning of the month following the delivery date, the manufacturers' VAT deferral-cancellation-return requests are within the framework of Article 11/1-c of the VAT Law, regardless of the date of sale of the said goods abroad. will be carried out.

CONCLUSION

In consignment goods sent abroad by the exporters, who are qualified as consignors, these transactions made to the broker or consignee because the buyer, price and delivery date of the goods are not known, and most importantly, the right of disposal of the goods subject to delivery is not transferred, will not be considered as an export exemption within the scope of Article 11 of the VAT Law. Following the actual sale of the goods sent abroad as consignment by the broker or consignee, exporter taxpayers will be able to issue an invoice on their behalf within 7 days and request a refund of the VAT they have incurred due to exports in the relevant period VAT declaration.

On the other hand, if the goods delivered with export registration by the manufacturers within the scope of Article 11-c of the VAT Law are exported as consignment abroad by the exporters within a 3-month period (or additional period), the manufacturer taxpayer will not be allowed to sell the goods sent abroad as consignment for the postponement cancellation procedures. will be carried out regardless.

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