Turkey's Revenue Administration has announced the publication of General Communiqué No. 43, which amends the General Communiqué on the Application of VAT. One of the main amendments concerns the refund of input VAT in relation to supplies of foodstuffs that are subject to a reduced VAT rate of 1%. Taxpayers selling foodstuffs subject to the 1% rate that have inputs subject to a higher VAT rate (18% standard rate) are able to claim a refund. Previously such refunds could only be claimed in January in respect of input VAT incurred in the previous year. With the amendments, taxpayers may claim a refund for input VAT incurred in the first six months of the year (January to June), which may be claimed in the return for June at the earliest and in the return for November at the latest. Claims for the second six months of the year (July to December) may be made in the following January return.

Another important change is in regard to partial VAT withholding (reverse charge) on deliveries of iron and steel products. Previously set to 40% (4/10) withholding, the amount is now set to 50% (5/10) withholding. This applies from 1 November 2022.