Regulation
Pursuant to the “Tax Procedure Law General Communiqué (Sequence No: 572)” published in the Official Gazette dated 18.10.2024 and numbered 32696, it has become obligatory for those who are within the scope of the obligation to certify (except for transactions between non-taxpayers) to make all kinds of collections and payments exceeding TRY 7,000 through banks or other intermediary financial institutions and to certify these collections and payments with documents issued by intermediary institutions.
Non-taxpayers shall also make their collections and payments exceeding TRY 7,000 related to their purchases from those within the scope of the obligation to certify through intermediary financial institutions.
Payment Methods
All kinds of collections and payments exceeding TRY 7,000 shall be made through intermediary financial institutions such as banks and similar financial institutions or postal administrations, and these collections and payments must be certified by documents issued by these institutions.
In case the payments within the scope of the obligation to certify are made by going to the branches of intermediary financial institutions (e.g. banks) in person, on the account of the person making the collection, and by including the explanations regarding the transaction, the obligation to certify will also be deemed to have been complied with.
Examples
Example 1: Mr. (C), who does not have a bank account, purchased a table amounting to TRY 15,000 TL from (D) Ltd. Şti., went to the bank branch where (D) Ltd. Şti. has an account to make the payment, made the payment by including the explanations of the transaction and receiving a bank receipt. In this case, the obligation to certify will be deemed to have been complied with and no penalty will be imposed on Mr. (C) and (D) Ltd. Şti.
Example 2: Mr. (E), who does not have a bank account or credit card, purchased a mobile phone amounting to TRY 25,000 from Mr. (F). Mr. (E) paid the mobile phone price to Mr. (F) in cash at the time of the transaction. Mr. (F) deposited the payment into his own account by going to the bank branch. In this case, the obligation to certify will not be complied with, and accordingly Mr. (E) and Mr. (F) will be penalized separately.
Penalty for Both Payer and Payee
A special irregularity penalty of 10% of the transaction amount shall be imposed for each transaction to both payer and payee who do not comply with the obligation to certify, provided that the penalty amount shall not be lower than below:
– TRY 20,000 for first class merchants and self-employed persons,
– TRY 10,000 for second class merchants, farmers keeping books and those are subject to small business taxation,
– TRY 5,000 for others.