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VAT Refund Exceptions on Agricultural Products
VAT Refund Exceptions on Agricultural Products
We inform you that according to Article 153.3 of the Tax Code, starting from January 1, 2022, for a period of 3 years, the amount of VAT for the wholesale and retail sale of agricultural products (of both local and foreign origin) is calculated based on the trade margin.
According to Article 175.12 of the Tax Code, taxpayers engaged in the wholesale and retail sale of agricultural products are not allowed to reclaim VAT amounts paid for agricultural products acquired from January 1, 2022, for a period of 3 years.
Additionally, please note that regardless of the provisions of Article 175.12 of the Tax Code, taxpayers engaged in the wholesale and retail sale of imported agricultural products have the right to reclaim the VAT paid on the imported agricultural products and to calculate VAT based on the full value of the transaction at the time of their supply. For this purpose, these individuals must submit a notification form—approved by the relevant authority designated by the executive body—to the tax authority where they are registered, starting from January 1, 2024, and before the date they begin importing agricultural products. If the taxpayer fails to submit the form within the specified timeframe, the provisions of Article 175.12 of the Code shall apply. The taxpayer’s choice under this article cannot be changed during the calendar year.
We also inform you that the non-reclaimable VAT amount may be deducted from income depending on the intended use of the relevant goods (services, work) on which the tax has been imposed, based on Articles 108, 109, and other applicable articles of Chapter X of the Tax Code.
We inform you that according to Article 153.3 of the Tax Code, starting from January 1, 2022, for a period of 3 years, the amount of VAT for the wholesale and retail sale of agricultural products (of both local and foreign origin) is calculated based on the trade margin.
According to Article 175.12 of the Tax Code, taxpayers engaged in the wholesale and retail sale of agricultural products are not allowed to reclaim VAT amounts paid for agricultural products acquired from January 1, 2022, for a period of 3 years.
Additionally, please note that regardless of the provisions of Article 175.12 of the Tax Code, taxpayers engaged in the wholesale and retail sale of imported agricultural products have the right to reclaim the VAT paid on the imported agricultural products and to calculate VAT based on the full value of the transaction at the time of their supply. For this purpose, these individuals must submit a notification form—approved by the relevant authority designated by the executive body—to the tax authority where they are registered, starting from January 1, 2024, and before the date they begin importing agricultural products. If the taxpayer fails to submit the form within the specified timeframe, the provisions of Article 175.12 of the Code shall apply. The taxpayer’s choice under this article cannot be changed during the calendar year.
We also inform you that the non-reclaimable VAT amount may be deducted from income depending on the intended use of the relevant goods (services, work) on which the tax has been imposed, based on Articles 108, 109, and other applicable articles of Chapter X of the Tax Code.