Minister of Treasury and Finance Mehmet Şimşek stated that “We see that some businesses demand higher amounts compared to cash payments, citing the high commission rates of banks. It is important for our taxpayers not to pass on the commission difference to citizens.”

Minister of Treasury and Finance Mehmet Şimşek evaluated the efforts directed at businesses not accepting card payments by the Revenue Administration. Pointing out that numerous measures have been implemented to enhance the fight against the informal economy, Şimşek reminded that in this context, payment recorder devices that allow payment with bank cards at retail outlets providing goods and services were merged with POS devices that issue receipts. Şimşek highlighted that these new generation payment recording devices prevent sales from being unrecorded, allowing slips and receipts to be issued as a single document for payments made with bank cards. Furthermore, mentioning that they are working on businesses that still use old generation devices and do not accept credit cards for payments, Şimşek emphasized that they have made it mandatory for all taxpayers to acquire new generation payment recording devices by July 1, 2024, and accept payments through bank cards or credit cards. “SPECIAL TAX PENALTIES ARE IMPOSED” Şimşek noted the following regarding the new regulation: “Now, all retail businesses providing goods and services are required to use new generation payment recording devices and offer the ability to pay with bank cards or credit cards.

Taxpayers who do not obtain new generation payment recording devices or do not provide the option of payment with bank cards or credit cards in their transactions are subject to special tax penalties by the Revenue Administration.”

“We see that some businesses demand higher amounts compared to cash payments, citing the high commission rates of banks. It is crucial for our taxpayers not to pass on the commission difference to citizens.” However, Şimşek pointed out that the amount requested might sometimes be significantly higher than bank commission rates, stressing that commission rates may vary among different banks and the time it takes to receive the amount from the bank can also influence the rate. REPORT TO THE REVENUE ADMINISTRATION Şimşek stated that certain banks have recently lowered their rates to below 2%, saying, “In cases where citizens are not provided with the option of paying with bank cards or credit cards or are requested a considerable difference, if these issues are reported to the Revenue Administration by the citizens, inspections are conducted, and necessary punitive measures are imposed. Citizens can report through various channels such as the Digital Tax Office, Revenue Administration Mobile application, BIP, or Whatsapp.”

“BANKS AND PAYMENT INSTITUTIONS ARE ALSO PENALIZED” Şimşek pointed out that the Revenue Administration penalizes both the banks and payment institutions which, despite being required to obtain new generation payment recording devices, only provide POS devices to taxpayers, for each violation separately. He mentioned, “With the recent legislative amendment, the amount of this penalty has been increased to 200,000 Turkish Liras. This amount will be annually adjusted with the revaluation rate.

The Administration has written official letters to all banks and payment institutions requesting them to stop the use of faulty POS devices and ensure that taxpayers acquire these devices and receive new generation payment recording devices instead. Banks and payment institutions that do not make this change within the given deadline will also face penalties for each violation.

Our Ministry continues its resolute efforts in combating informal trade in the retail sector without interruption. With these efforts, we are deepening our work towards enhancing justice and efficiency in taxation.”