Approved by the Main state tax authorities of Turkmenistan of January 21, 1994 No. 3

The instruction about procedure for calculation and tax discharge on value added

List of amending documents

I. General provisions

This Instruction is developed according to the Law of Turkmenistan of October 8, 1993 "About the value added tax".

1. The value added tax (VAT) represents withdrawal form in the government budget of part of the value added created on all production stages of goods (works, services).

2. The value added tax is paid in currency of Turkmenistan.

II. Taxpayers

3. Taxpayers on value added are:

a) legal entities, including the companies with foreign investments *, performing productive and other business activity;

b) the branches, departments, representations of foreign legal entities and other separate divisions of the companies which are in the territory of Turkmenistan and which are independently realizing goods (works, services);

c) the international associations and foreign legal entities performing productive and other business activity in the territory of Turkmenistan;

At the same time, under representation of the foreign legal entity for the purposes of the taxation foreign bureaus, office, the agency, any foreign organizations are accepted activities of which are connected with development of natural resources, implementation of the works on construction, installation, installation, assembly, adjustment, equipment maintenance provided by contracts and other similar works, and also other organizations and physical persons which represent the foreign legal entity in the territory of Turkmenistan.

d) persons who are engaged in business activity without formation of legal entity if their proceeds from sales of goods (works, services) exceed 10 minimum sizes of the salary a year which is determined as follows.

The minimum size of the monthly salary established in legislative procedure is multiplied on the number of months in year and the received work increases by 10 times.

The companies and the organizations specified in subitems "an" - "in" this Item, are referred to as "companies".

Income of the personal companies of foreign citizens for the purposes of the taxation is considered as the income of owners of these companies and is subject to the taxation according to the subitem "g" of Item 3 of this instruction.

The foreign physical person in which property completely there is any economic unit which income in the country of its permanent residence (registration) is subject to taxation by other, than the corporate profit tax or similar tax is considered the owner of the personal company.

III. Taxation objects

5. The taxation objects are turnovers (including export-import transactions) on:

- realization of all goods (works, services) self-produced and acquired on the party. At the same time, on imported goods (works, services) as the taxation object the difference between the cost of the realized import goods and at the price of their purchase is;

- sales of goods (works, services) in the company for needs of own consumption on which costs do not belong on costs of production and addresses, and also to the workers;

- sales of goods (works, services), without payment of cost in exchange for other goods (works, services);

- to transfer it is non-paid or with partial payment of goods (works, services) to other companies or physical persons;

- realization of objects of pledge, including their transfer to the pawnbroker in case of non-execution of the obligation provided with pledge.

6. In case of the taxation the subject, product, products is considered goods, including it is production - technical appointment, real estate, including buildings and constructions, and also electro - and heat power, gas.

7. The taxation objects of the realized works of bk ~ rq amounts handed over (executed) and paid by customers construction, repair, is scientific - research, is pilot - design, technological, project - prospecting and other works.

8. In case of rendering of services are assessed with tax:

a) services of passenger and load carrying transport, including transportation (transfer) of gas, oil, oil products, electrical and heat energy, services in loading, unloading, reloading of goods, storage;

b) services in leasing of property, including in leasing;

c) intermediary services, including connected with delivery of goods;

d) communication services, household, housing and communal services;

e) services of physical culture and sport, sanatorium and improving, tourist and excursion services;

e) services in accomplishment of orders by trade enterprises;

g) services in preparation and advanced training of personnel;

h) promotion services;

i) innovative services, services in data processing and information support;

j) services in procurement and sales of products, supply and trade;

k) all other paid services.

IV. Determination of leviable turnover

9. Leviable turnover is determined on the basis of the cost of implementable goods (works, services) estimated proceeding from:

- the free (market) prices and rates, without inclusion of the value added tax in them;

- the state regulated wholesale prices and rates (without inclusion of the value added tax in them);

- the state regulated wholesale and retail prices and rates including the value added tax, applied on products of fuel and energy complex and on the main consumer goods and the services rendered to the population.

For trade, supplying and sales and procurement organizations leviable turnover is the gross income which is determined in the form of difference between sales price of goods and the price of their purchase.

10. On excise goods calculation of leviable turnover is performed taking into account the amounts of excises.

11. In cases if the companies receive financial aid, the amounts on the charitable purposes, different types of borrowed funds (except for bank loan), then irrespective of terms of their obtaining and recoverability, leviable turnover increases by these amounts for the purpose of the taxation.

12. In case of return of 11 means specified in Item by the companies which received them compensation from the budget of earlier paid amounts of the value added tax is not made by it, the tax discharge by the companies receiving these returnable amounts is also not made.

The tax discharge on value added from the amounts of financial aid, the amounts on the charitable purposes, different types of borrowed funds (except for bank loan) is made at the expense of these means.

13. When using in the company of goods (works, services) of own production on which costs do not belong on costs of production and addresses of determination of leviable turnover the cost of these or similar goods (works, services) estimated proceeding from the applied prices is assumed as a basis, and in case of their absence - on actual cost.

In case of work wages in kind self-produced goods, leviable turnover of the companies is the goods cost determined proceeding from free retail prices, and on goods on which regulated retail prices are applied, - proceeding from these prices.

14. The amounts of advance and planned payments which arrived in the accounting period on the settlement account on account of the forthcoming deliveries of goods or performance of works, services and reflected on the account credit "Calculations for the advance payments received" do not join in liable to the value added tax turnover. These amounts are subject to the taxation in process of shipment of goods or performance of works, services on account of these payments.

15. In case of realization by the company to the population, including the workers, self-produced goods with calculations through cash desk, leviable turnover it is estimated proceeding from selling prices on these or similar goods, and in case of their absence - from actual cost.

16. Leviable turnover in case of production of goods from raw materials supplied by the customer and materials is the cost of their processing. At the same time, raw materials supplied by the customer are understood as the raw materials transferred by the customer to the producer without payment of cost of raw materials, for processing and production of goods with the subsequent return of these goods to the supplier of raw materials.

17. The cost of returnable tare, including the glassware having mortgage cost does not join in leviable turnover, except for turnovers on realization of again made container predpriyatiyamiizgotovitel.

18. For the construction, construction and repair organizations leviable turnover is the total estimated cost of the works which are handed over (executed) and paid by customers.

If the customer compensates to contract organizations of costs, not included in the estimated cost of installation and construction works, then in the expenses reflected in the accounts shown on payment the value added tax shall be included.

The installation and construction works performed by economic method are equated to the works performed on the party and assessed with tax in process of their accomplishment.

19. When implementing of intermediary services by the companies, leviable turnover the income amount received in the form of commission fees and charges is.

20. Turnovers on sales of products, semifinished products, works and services as one structural units of the company for promyshlennoproizvodstvenny needs to other structural units of the same company (intra factory turnover) are not assessed with tax.

Structural units of the company in this subitem are understood as the structural units which do not have the settlement account in organizations of banks and consisting on balance of the main company or having separate balance, but are not given the rights of the legal entity.

21. Date of making of turnover day of receipt of funds for goods (works, services) into accounts of the companies in organizations of banks is considered, and in case of payments with cash - day of receipt of revenue in cash desk.

For the companies at which realization is considered in process of shipment of goods (to performance of works, services) date of making of turnover their shipment (accomplishment) and presentation to buyers of settlement documents no later than fixed term is considered.

In case of voluntary conveyance or goods issue (works, services) for needs of own consumption day of making of turnover is day of their transfer (accomplishment).

Date of making of turnover on the amounts of advance and planned payments day of shipment of goods or presentation of accounts for the performed works, services on account of these payments is considered.

V. The inventory (works, services) exempted from tax

22. Are exempted from the value added tax:

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