Ministry of Finance takes action: Heavy fines coming for those who do not replace old-style POS devices!

The Ministry of Treasury and Finance will impose fines on those who still use old-style POS devices, despite the transition to new-generation cash register POS devices that combine payment terminals and fiscal cash registers as part of the fight against the informal economy.

The Ministry has begun implementing numerous measures as part of the fight against the informal economy, such as ensuring the accurate and timely issuance of fiscal documents like retail receipts and invoices, and expanding card payment options.

With the implementation launched by the Ministry in 2013, it was envisioned that new-generation cash register devices would be used by combining mobile EFT-POS devices, which allow payments with bank cards in retail businesses, with cash register devices that issue receipts.

Thus, for collections made with bank cards via new-generation cash register devices, the slip and the cash register receipt began to be issued as a single integrated document.

ABUSES ARE BEING PREVENTED

This situation has enabled the prevention of abuses such as collections made via mobile EFT-POS devices remaining off the books, the provision of loans contrary to regulations through these devices, or the issuance of receipts or invoices in the names of persons other than those to whom the sale was made.

With the implementation, it was planned to end the use of these POS devices and old-generation cash register devices within a schedule and to start using new-generation cash register devices with EFT-POS features.

Following the failure to fully achieve this transformation, it was decided with a communiqué published on December 30, 2023, that the transformation must be completed by July 1, 2024, at the latest. The communiqué also introduced the obligation to accept payments with bank cards via new-generation cash register devices.

On the other hand, with the legislative amendment, special penalty regulations were also introduced regarding issues such as making collections using the names or accounts of others, using payment systems and devices belonging to others, and failing to provide taxpayers with devices and systems suitable for their status.

LETTERS SENT TO BANKS AND TAXPAYERS

The Ministry took action upon detecting that mobile EFT-POS devices were still being used by taxpayers and wrote to all banks and payment institutions. The letter requested that the use of mobile EFT-POS devices, which were incorrectly provided to businesses offering retail goods and services in the past, be terminated, that these devices be retrieved from taxpayers, and that new-generation cash register devices or devices with a secure fiscal application system be provided in their place.

During the inspections, SMS and letters were also sent to taxpayers selling retail goods or providing services who were found to be using mobile EFT-POS devices despite it being prohibited. The Ministry requested that the use of these devices be terminated, that they be returned to banks or payment institutions, that new-generation cash register devices or devices with a secure fiscal application system be provided in their place, and that payments with bank cards be accepted through them.

As a result of these procedures, for each instance of detection, a fine of 20,000 Turkish Lira will be imposed on taxpayers who keep books based on the balance sheet and continue to use prohibited mobile EFT-POS devices, 10,000 Turkish Lira on those who keep books based on the business account, and 200,000 Turkish Lira on banks and payment institutions that do not retrieve these devices from taxpayers.

Furthermore, taxpayers who do not provide the opportunity to make payments with bank cards via new-generation cash register devices will also be fined 20,000 Turkish Lira or 10,000 Turkish Lira for each instance of detection.

"FINES WILL BE IMPOSED ON TAXPAYERS AND BANKS"

Minister of Treasury and Finance Mehmet Şimşek stated that they are determinedly continuing their efforts in line with the goal of ensuring tax justice, capturing areas that remain off the books, and increasing the level of tax compliance.

Şimşek noted the following:

"Ending the use of faulty POS devices, retrieving these devices from taxpayers, and providing new-generation cash register devices in their place is important in terms of fighting the informal economy. Fines will be imposed on taxpayers, banks, and payment institutions that do not make this change. Our Ministry is continuing its efforts to combat informality in retail trade with determination and without interruption."

News Source: AA