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12.2. VAT on the Supply of Services by Non-Residents

Branches of foreign entities carrying on taxable or other activities in Turkmenistan are required to register and charge VAT with respect to their supplies. Note that pursuant to a tax law amendment of September 2016, for VAT purposes, the place of supply of the following services is deemed to be the place where the legal entity or its branch receiving the services is located, or where the individual entrepreneur receiving the services has his permanent residence or his fixed place of business:

  • Certification of equipment including testing thereof (this includes means of transportation such as vessels and aircraft); and
  • Communication services, including the use of cellular mobile communication networks and services related to the lease of communication channels.

If non-resident companies not registered in Turkmenistan supply taxable services from abroad to a customer in Turkmenistan, then the tax agent/attorney is required to withhold VAT from payments to be made to the non-resident. A reverse-charge mechanism may apply in certain cases in Turkmenistan.