The Procedure of Revenue Based Taxation in Value Added Tax

Revenue-based taxation procedure is regulated by the Law 7104 and the article 38 of the Value Added Tax (VAT) 3065 Law. No. 718 of 06.02.2019 of Presidential Decision which published in the Official Gazette dated 07.02.2019 and numbered 30679 has been issued for the first time on the sector and tax rate and it will be implemented from 01.03.2019, and the public transport activities carried out by bus companies exclusively engaged in domestic passenger transport activities by bus within the provincial boundaries are included in the revenue-based taxation procedure. In the reve-nue-based taxation system, VAT is calculated as revenue and paid to the government and recorded as expenditure. Essentially, this procedure aims at voluntary tax compliance. However, this system has some pros and cons. In this study, these pros and cons will be evaluated together and what to do about the system will be discussed.