“New Era for Payments Above 7,000 TL”: Required even for installment payments! Applies to those without a card too

A regulation issued by the Ministry of Treasury and Finance’s Revenue Administration (GİB), published in the Official Gazette on October 18, 2024, mandates that payments exceeding 7,000 TL for goods or services must be made through banks, financial institutions, or postal services (PTT) in Turkey. This requirement also applies to consumers without a bank account or credit card; they must make these payments via PTT branches or ATMs to fulfill the obligation.

Certification Requirement and Penalty Applications 

All payments above 7,000 TL must be conducted through intermediary financial institutions. Non-compliance will result in penalties for everyone involved, including non-tax-paying consumers. Those failing to meet certification requirements will be fined 10% of the transaction amount, with a minimum penalty of 5,000 TL. For instance, if a consumer purchases a gold bracelet worth 25,000 TL and pays in cash, they would incur a 10% penalty (2,500 TL). However, as this amount is below the minimum threshold, the penalty will be increased to 5,000 TL.

– First-Class Merchants: Subject to a 20,000 TL penalty.

– Second-Class Merchants and Basic Taxpayers: Subject to a 10,000 TL penalty.

– Other Consumers: Minimum penalty of 5,000 TL.

No Penalty for Self-Reporting 

If a person or business makes a cash payment but reports it to the authorities within five business days, they will be exempt from the penalty for non-compliance with certification requirements. In such cases, the obligation to certify the payment is considered met.

Application to Installment Payments 

In cases of installment payments where the total amount exceeds 7,000 TL, each installment must be made through financial intermediaries, regardless of whether each installment is under 7,000 TL. If multiple transactions with the same person or entity exceed 7,000 TL in a single day, all payments, starting from the point when the threshold is exceeded, must also be made through banks or financial institutions.

Implications for Individual Consumers 

This regulation encourages individuals to open a bank account or obtain a credit card for certain transactions, as those without bank accounts or credit cards are also subject to the rule. Consumers can make payments at ATMs or PTT branches, ensuring that all payments are documented through financial institutions and meet certification requirements.