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The difference between the 8 percent reduction in value added tax (VAT) on education and training services to 1 percent must be returned to the parents by arranging an expense statement.
With the Decree of the President published in the Official Gazette, the VAT rate on education and training services provided between September 1, 2020 and June 30, 2021 was temporarily reduced from 8 percent to 1 percent. After this decision, eyes turned to reimbursing parents who paid the schools before September 1.
The Treasury and the Ministry of Finance, Revenue Administration in Turkey with a letter sent to the Association of Private Schools, for education and training services on September 1, 2020 organized in the bill before the event to be declared calculated KDV 8 percent reported 7 percent KDV intermediate difference vision extradition.
“Private universities are also included”
Professor in the Department of Finance, Faculty of Political Science, University of Ankara. Dr. Semih Öz made an assessment on how reimbursement can be made.
Stating that the VAT reduction does not only reach private schools, Öz said that education and training services provided for private universities, motor vehicle driving courses, social services provided to families, children, the disabled, the elderly and others who they need protection are also within reach.
Recalling that parents may have made a payment to these education and training institutions before September 1 and issued an invoice in this context, Öz said:
“If an invoice for education and training services is issued before September 1, the 7 percent difference in VAT must be returned by processing an expense voucher. The VAT on expense vouchers may be subject to a discount by taxpayers who provide educational services to the buyer in the period in which the declaration is made. When you return a garment, the store asks you to sign a document. That document is an expense note. The same method applies here The private school will issue an expense voucher and have the parents sign it. The amount written on the expense voucher must be returned to the parents. “
Öz emphasized that if the invoice is not fixed regarding payments made before September 1, this amount is seen as an “advance” and the schools can offset it from the payments to be made, said Öz, “Some schools will offset the later fees. If parents request, reimbursement can be made immediately. ” used expressions.
Öz stated that in terms of tax technique, it would be more appropriate to regulate the issue with a temporary article to be included in the VAT Law, but that the Tax Administration brought an administrative solution to the issue by writing a letter.
“The duration of the VAT reduction in food services should be extended”
Clarifying the application of taxes on food wages, Öz recalled that the VAT collected from catering services was determined as 1 percent until December 31 with the President’s Decree on July 31. Öz stated that if the meal fee is already collected within the tuition fee, it will be included in the 1 percent VAT before June 30, 2021, adding:
“If the meal rate is charged separately, the tax reduction is valid until December 31, 2020. In this case, it would be appropriate to extend the duration of the tax reduction until June 30, 2021, in line with tuition fees. Otherwise, as of January 2021, the VAT on meal rates is 8 percent. It is possible to return the difference in VAT with expense note for invoices issued before July 31, 2020 in catering services until the new year ”.
Öz added that VAT on service charges will continue to apply as 8 percent.
SOURCE: ANADOLU AGENCY
