It has become mandatory to use a bank or intermediary financial institution for payments exceeding 7 thousand liras. The regulation now includes final consumers in the documentation scope. In cases where cash payment is detected, both the buyer and the seller will be penalized.

The obligation to carry out collections and payments exceeding 7 thousand liras through banks or intermediary financial institutions has been introduced. The General Communique of Tax Procedure Law published in today’s Official Gazette by the Ministry of Treasury and Finance addresses this issue. According to the decision, individuals who are not taxpayers, as well as taxpayers within the scope of the obligation to provide documentation, are required to carry out collections and payments exceeding 7 thousand liras for goods and services they purchase through financial institutions. For instance, if a person working as a civil servant in a public institution purchases a refrigerator for 20 thousand liras from a company engaged in retail white goods trade for home use, since the amount exceeds 7 thousand liras, the collection and payment of this transaction will need to be done through bank and intermediary financial institutions. Penalties will be imposed on those who do not comply with the documentation requirement.

HOW WILL THOSE WITHOUT BANK ACCOUNTS MAKE PAYMENTS? Payments exceeding 7 thousand liras can be made at the branches of financial institutions. Explanations related to the transaction must also be included in the payments. A person without any bank account or credit card will need to go to a branch of the bank where the seller’s account is located to make the payment. By including explanations related to the transaction and obtaining a bank receipt, the payment will be completed. For example, a person without any bank account or credit card, when purchasing a table for 15 thousand liras from a company engaged in retail furniture trade, will need to go to a branch of the bank where the relevant company’s account is located to make the payment.

WHO WILL BE COVERED? The definition of non-taxpayers has also been redefined in the communique. According to the regulation, the term non-taxpayers will cover first and second-class merchants who are required to issue invoices, self-employed professionals, merchants with income determined by simple method, farmers obliged to keep records, excluding exempted artisans.