VAT Rate and Regulation on Electricity Bills
In calculating electricity bills, all taxes and funds in the invoice detail are seen directly as K.D.V. base.
However, in this bill detail, especially within the boundaries of the municipality electricity users; 1 percent of the consumption price of those who use electricity from the industrial tariff, and 5 percent of the consumption price in other subscribers accrues municipal excise tax.
The beginning of the K.D.V. problem with electricity bills is; this begins with the inclusion of municipal excise tax on the K.D.V. base, i.e. the receipt of K.D.V. from municipal consumption tax.
In addition, delay hikes due to late payment of electricity bills; According to articles 20 and 24/C of K.D.V. law no. 3065, the invoice amount is calculated by base amount and the delay penalties found are also applied to the K.D.V.
However, when a delay increase is applied to this invoice, which has not been paid on time; The amount of K.D.V. and Municipal Excise Tax in the invoice is also in the base amount and the K.D.V. in the invoice amount is also accrued to K.D.V. within the late penalty.
VAT Rate and Regulation on Electricity Bills – Taxes on Invoice
On the other hand, in Circular 1004 of the General Directorate of The Turkish Electricity Authority, the delay increase if the electricity bills are not paid on time; will be calculated on the value-added taxed price shown in the invoices.
Delay increase that will accrue on an electricity bill due at a date after the payment period; K.D.V. is applied for the second time to both the invoice K.D.V.si and the Municipal Excise Tax, which has previously been applied to K.D.V.
K.D.V. is charged on municipal consumption tax when calculating invoices, as well as on electricity bills that are not paid on time; For the second time, the K.D.V.si of the municipal excise tax previously accrued by the K.D.V., as well as the K.D.V. accrued on the Invoice, are subject to tax re-inheritance by applying K.D.V. as much as the rate in the re-walk.
Relevant and Authorized institutions and organizations; it is urgently necessary to make arrangements to end this mess.
Consumers will continue to pay taxes as long as this practice continues.
Next week, we will try to examine distribution fee, Transmission System Usage fee and other details