The ones subject to the partial vat cut on 5/10 rate
Vat deduction is practiced to the vat tax payers by administrations and institutions according to the relevant law number 5018, on 5/10 rate.
Delivery of metal bars
The ones practicing cut and cut rate
According to vat general communique (I/C-2.1.3.1/a and b), part (I/C-2.1.3.3.1.2.), vat deduction is practiced on the delivery of metal bars on the rate of (5/10) [9].
Vat deduction is not practiced when the delivery of copper, zinc, aluminum except for the scrap metals, by the importers and primary producers if they pass into other hands, vat deduction is practiced. Vat deduction is also practiced when the delivery of scrap metals is carried out by the importers or primary producers.
On the delivery of the goods by the importers, the explanation of “since this good is supplied by means of direct importation, deduction is not practiced” and the information of invoice and customs declaration are written on the invoice issued by the importers.
The ones making ore production carry out the transactions without having vat deduction practice by making an explanation of “since it is produced by means of ore, deduction is not practiced” on the invoice they issue.
Scope
Goods composed of all types of scrap metals and copper, zinc, aluminum bars are in the scope of stoppage.
The delivery of slab, billet and ingot are also considered to be the metal bars in regard to this implementation.
Without considering practicing deduction on the buying of above mentioned metals and involving silicon, magnesium, manganese, nickel and titanium, there will be no deduction on the selling of copper, zinc, aluminum.
