Penalties for Payments Exceeding 7000 TL
Penalties for Payments Exceeding 7000 TL (SIRA NO: 572)
Penalties for Payments Exceeding 7000 TL (
Keyword: 7000 TL payment penalty
Recent updates to the Tax Procedure Law Communiqué (No. 572) introduce important rules for any payments and collections exceeding 7,000 TL. In this blog post, we’ll explain these updates in simple terms and clarify how they affect both taxpayers and non-taxpayers.
1. Non-Taxpayers are Now Included
With the first article of this Communiqué, the rules that were previously only applicable to taxpayers have been expanded to include non-taxpayers as well. This means that individuals who are not tax-registered must also comply with the obligation to document payments exceeding 7,000 TL.
2. Rules for Non-Taxpayers
Non-taxpayers now fall under certain conditions that were previously only applied to registered taxpayers. These individuals include:
Small businesses exempt from tax
Farmers and self-employed individuals
For instance, if a non-taxpayer farmer makes a large sale, the payment for that transaction must be made through a financial intermediary (such as a bank). Failing to comply may result in penalties.
3. Documentation Obligation
According to the Communiqué, all payments and collections exceeding 7,000 TL must be made through financial intermediaries (banks, payment institutions, etc.). This applies to both taxpayers and non-taxpayers. Let’s look at a few examples:
Example 1: Purchasing Home Appliances
- Mr. (A), a public servant, buys a refrigerator worth 20,000 TL from a retail store. Since the payment exceeds 7,000 TL, it must be processed through a financial intermediary. If the payment is not handled this way, both Mr. (A) and the retail company will be penalized.
Example 2: Payment Through a Bank
- Mr. (C) purchases furniture for 15,000 TL and visits the bank to make the payment. He receives a receipt for this transaction, thus fulfilling the documentation obligation and avoiding any penalties.
Example 3: Cash Payment
- Mr. (E) buys a mobile phone for 25,000 TL and pays in cash directly to the seller, Mr. (F). Later, Mr. (F) deposits the cash into his bank account. However, since the payment was not documented at the time of purchase, both Mr. (E) and Mr. (F) will be fined for failing to comply with the rule.
These examples highlight the importance of documenting payments over 7,000 TL through financial intermediaries. Failing to do so can result in serious penalties.
4. Exemptions from the Obligation
Certain payments are exempt from this documentation requirement. Notably, transactions with foreigners or non-residents are not included. However, these transactions must still follow specific rules:
In transactions with foreigners, their passport number must be included on the invoice.
Payments collected in cash must be documented through a financial intermediary by the end of the next business day.
5. Penalty Applications
If the documentation obligation is not fulfilled, both the buyer and the seller will be fined separately. The amount of the penalty will depend on the size of the transaction. Therefore, it’s crucial to ensure that all payments exceeding 7,000 TL are processed through financial intermediaries to avoid any fines.
Conclusion
The updates regarding penalties for payments exceeding 7,000 TL introduce significant changes. Both taxpayers and non-taxpayers must pay close attention and ensure that any large payments are made through financial institutions. Failure to comply will result in substantial penalties.
If you have any questions about these rules, feel free to reach out in the comments section or contact us for more detailed advice!