Statement from Minister Şimşek concerning commercial vehicle owners: The Treasury will monitor closely

Minister of Treasury and Finance Mehmet Şimşek stated that with the National Vehicle Identification System, which will come into effect for commercial vehicles belonging to taxpayers starting from the beginning of next year, the 713 billion lira fuel consumption of 8 million vehicles will be tracked digitally, adding, "With the implementation of the system, an important step will be taken to prevent tax losses at fuel stations by preventing manual license plate entry and, consequently, the issuance of irregular fuel receipts."

In his assessment of the matter, Şimşek reported that their goal with the work they are conducting is to increase justice and efficiency in taxation, saying, "We will collect more taxes from those who earn more. We will improve budget financing by reducing the informal economy."

Reminding that they have implemented many regulations and studies to ensure competitive equality in the fuel market and to effectively combat the informal economy, Şimşek pointed out that they have decided to establish a tracking system that allows for the automatic identification of license plate information on payment recording devices connected to fuel pumps at stations in order to ensure tax security and increase audit efficiency in fuel sales transactions.

Şimşek stated that the National Vehicle Identification System will be put into operation by the General Directorate of Mint and Stamp Printing House, adding, "With the system developed by the Mint, license plate information for fuel sales made at fuel stations will be automatically and securely sent to new-generation fuel pump payment recording devices. Starting from January 1, 2025, the application start date, license plates cannot be entered manually into payment recording devices. Documents not issued within the scope of the system for vehicles subject to the requirement will be considered as never issued in terms of tax laws."

"INDIVIDUAL VEHICLES WILL BE ABLE TO VOLUNTARILY JOIN THE SYSTEM IN THE FIRST STAGE"

Noting that there are 8 million vehicles belonging to 2.5 million taxpayers in Turkey and that 2.5 million of these vehicles use vehicle identification systems belonging to private companies, Şimşek continued as follows:

"Approximately 223 billion lira worth of fuel purchases are made annually through Private Vehicle Identification Systems. With the use of the National Vehicle Identification System in all commercial vehicles, it is projected that 5.5 million commercial vehicles that do not use a vehicle identification system and whose license plates are entered manually at fuel stations will make approximately 490 billion lira worth of fuel purchases annually. With all 8 million vehicles belonging to taxpayers included in the system, 713 billion lira of fuel consumption will be under digital tracking and monitoring. It has been determined that in the fuel sector alone, at least 15 billion lira in tax losses occurred annually in 2022 due to irregular receipts and invoices worth 75 billion lira. With the implementation of the National Vehicle Identification System, an important step will be taken to prevent tax losses at fuel stations by preventing manual license plate entry and, consequently, the issuance of irregular fuel receipts."

Stating that there are 29 million vehicles in the country including individual vehicles, Şimşek pointed out that individual vehicles will be able to voluntarily join the system in the first stage.

"ALL FUEL REFUELING INFORMATION WILL BE STORED"

Şimşek reported that the system is designed as an integrated infrastructure with devices and software to be installed at fuel stations and on vehicles. Explaining that a device called a "vehicle identification unit" will be placed at the fuel tank inlet of vehicles and a device called a "vehicle identification reader" will be placed on the nozzles at fuel pumps, Şimşek stated that the vehicle identification information obtained through these two devices will be securely transmitted to the cash register.

Pointing out that they will also put into service a portal and a call center where stakeholders within the scope of the system can enter information, data, work, and transactions, Şimşek also said that there will be data centers where all kinds of data produced within the scope of the application are transferred electronically and where storage, analysis, and monitoring processes can be performed. Stating that devices and vehicle information are associated with each other for the automatic processing of fuel purchases by vehicles from stations, Şimşek also drew attention to the fact that information regarding the pump, cash register, fuel station, and fuel distribution company is also associated.

Explaining that the devices and modules in the entire fuel purchase process communicate securely among themselves, Şimşek said, "All information will be stored securely to verify the refueling transactions performed."

"NECESSARY DEVICES WILL BE INSTALLED BY THE END OF THE YEAR"

Minister Şimşek also issued warnings to those who will be covered by the application, stating the following:

"Taxpayers operating fuel stations are required to have the device in question installed on the nozzle of at least one pump unit by the end of the year. With the National Vehicle Identification System, there is a requirement to install a vehicle identification unit by December 31 on approximately 8 million vehicles acquired through leasing or included in the business and used for work. It is important that fuel stations provide all kinds of support required during the process of establishing and operating this system. The responsibility for maintaining the connections made within the scope of the system and ensuring that the system is continuously connected online will belong to the taxpayer operating the fuel station."