Requirement for Card Payments Over 7,000 TL Introduced: What Will Those Without Credit Cards Do?

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Requirement for Card Payments Over 7,000 TL Introduced: What Will Those Without Credit Cards Do?

The Ministry of Treasury and Finance's Revenue Administration has made it mandatory for payments exceeding 7,000 TL to be made through banks, financial institutions, or post offices. All individuals and entities, including those not subject to taxation, must comply with this rule. If the total price of installment transactions exceeds 7,000 TL, the installment payments must also be conducted in the same manner. Those who do not comply with this regulation may face a penalty of 5,000 TL.

Especially, ultimate consumers are required to document payments over 7,000 TL through intermediary financial institutions. Consumers who do not document these transactions and make cash payments will face penalties.

According to reports, the new regulation also affects various professional groups. First-class merchants and freelance professionals may face penalties starting from 20,000 TL if they do not comply with the rule. For second-class merchants, record-keeping farmers, and individuals earning through simple methods, the penalty limit will start from 10,000 TL. The amounts of the penalties imposed will be calculated not to be less than the minimum amounts determined as a special non-compliance fine of 10% of the transaction amount.

Penalties will be imposed not only on the recipient of the payment but also on the payer. If the total amount of transactions made with the same individual or entity exceeds 7,000 TL within a day, penal sanctions will apply even if each individual transaction remains below the limit. However, if a person making a payment contrary to the documentation requirement reports the situation to the administration within 5 business days, they may be exempted from the special non-compliance penalty imposed in their name.

For those without credit cards, a new process: ATM and PTT branches will be involved. Individuals without a bank account or credit card will also be affected by this regulation. They will need to go to banks or PTT branches or use ATMs to carry out transactions for payments exceeding 7,000 TL. These individuals must use these channels to fulfill the documentation obligation for payment verification.

In installment purchases, if the total amount exceeds the 7,000 TL threshold, the obligation to document will arise even if the installment payments remain below the limit. Therefore, it is essential that each collection or payment in the payment process is made through intermediary financial institutions. These new regulations bring significant changes for individuals and businesses, and serious penalties are anticipated in cases of non-compliance.