30December2015

DOCUMENTATION REQUIREMENT FOR COLLECTIONS AND PAYMENTS

The threshold for the documentation requirement for collections and payments has been decreased from TL 8.000 to TL 7.000- by means of the General Communique ob Tax Procedure Law (No:459) which was published in the Official Gazette no 29572 dated December 24, 2015. The communique which will enter into force as from January 1, 2016 regulates the following;

  • In the event that the collections and payments for the delivery of any goods or performance of any services,
  • collections and payments to be effected by means of down payment, deposits, earnest payments,
  • any collections and payments of the companies which they make with their own partners and/or other real persons or legal entities,

exceed the determined threshold, they should be effected through intermediary financial institutions and such transactions should be documented by the documents issued by such institutions.

Transaction performed for the same persons or institutions on the same day

In the event that the total amount of the transactions performed for the same persons or institutions on the same day exceeds TL 7.000-, even if each individual transaction remains below the threshold determined for such transaction, the relevant collections and payments after exceeding the threshold should be effected through the intermediary financial institutions.

Partial Collections and Payments

In the event that the transaction amount subject to collection and payment exceeds TL 7.000- in terms of the documentation requirement, the total amount of the transaction shall be taken into consideration in partial payment of the amount on different dates and each individual collection and payment will be carried out through intermediary financial institutions in terms of the documentation requirement.

Example:The self-employed (C) will receive TL 12.000 for the service it will provide to (D) A.Ş. for a period of one year. As per the agreement concluded between them, (D) A.Ş. will pay the service fee in installments of TL 1.000. In this case, the issuance of the self-employment receipts over TL 1.000 on the dates of payment of the installment, will not remove the requirement for documentation and as the total contract value exceeds the determined threshold, each partial collection and payment will be documented through the intermediary financial institutions.

Please click here to view the Communique which includes the relevant regulation. Please contact with your customer representative or an expert for further information.

Written by Selma Kıy, Posted in Taxation Law

About the Author

Selma Kıy

CPA, Managing Partner
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