In transactions subject to withholding, the seller collects only the portion of VAT not withheld; the withheld portion is declared by the buyer. Construction work, cleaning, security and labour supply services are typical subjects of withholding. Rates are set by the VAT General Implementation Communiqué.
Related terms
Value added tax (VAT)An indirect tax levied on the value added at each stage of the supply of goods and services and passed on to the final consumer.VAT refundRefunding to the taxpayer, in cash or by offset, VAT that cannot be recovered through deduction because of exempt transactions or reduced rates.Advance taxTax paid in advance during the year by income and corporate taxpayers, in quarterly periods, on current-period earnings.Arm's length principleThe principle that transactions between related persons should be carried out at the prices and on the terms that would apply between independent parties with no such relationship.Capital gainGains of individuals from disposing of certain assets and rights that are subject to income tax.Certified public accountant (SMMM)A professional authorised to keep taxpayers' books, prepare their financial statements and advise on accounting and tax matters.
Last updated: October 22, 2026 · This definition is for general information only.