Comment from Lightning on National Vehicle Recognition System: We will prevent tax loss at fuel stations.

The Minister of Treasury and Finance, Mehmet Şimşek, stated that with the National Vehicle Recognition System, which will come into effect for commercial vehicles belonging to taxpayers from the beginning of next year, the digital tracking of the 713 billion lira fuel consumption of 8 million vehicles will be possible. He said, "With the implementation of the system, manual plate entry and thus the issuance of unauthorized fuel receipts will be prevented, and an important step will be taken to prevent tax loss at fuel stations."

"WE WILL COLLECT MORE TAXES FROM THOSE WHO EARN MORE"

In his evaluation on the subject, Şimşek stated that their aim is to increase justice and efficiency in taxation, saying, "We will collect more taxes from those who earn more. By reducing informal economy, we will improve budget financing." Şimşek reminded that they have implemented many regulations and studies in order to ensure competition equality in the fuel market and effectively combat the informal economy, and pointed out that they have decided to establish a tracking system that allows automatic identification of plate information on fuel pump payment recording devices at stations in order to ensure tax security and increase audit effectiveness in sales transactions at fuel stations.

Şimşek stated that the National Vehicle Recognition System will be put into operation by the General Directorate of Mint and Stamp Printing, saying, "With the system developed by the Mint, the plate information of vehicles will be automatically and securely sent to the new generation fuel pump payment recording devices in fuel stations. Starting from the application start date of January 1, 2025, the entry of vehicle plates into payment recording devices cannot be done manually. Documents that are not issued within the scope of the system for vehicles subject to obligation will be considered as never issued in terms of tax laws."

LOSS OF TAXES IN 2022 IS AT THE LEVEL OF 15 BILLION LIRA

Şimşek stated that there are 8 million vehicles belonging to 2.5 million taxpayers in Turkey, and 2.5 million of these vehicles use private company vehicle recognition systems, and continued as follows; "Approximately 223 billion lira worth of fuel purchases are made through Private Vehicle Recognition Systems annually. It is predicted that approximately 5.5 million commercial vehicles, whose plates are manually entered into the system at fuel stations and do not use vehicle recognition systems, will make fuel purchases worth approximately 490 billion lira annually within the scope of the National Vehicle Recognition System. With the inclusion of all 8 million vehicles belonging to taxpayers in the system, the digital tracking and monitoring of the 713 billion lira fuel consumption will be ensured. It has been determined that at least 15 billion lira of tax loss occurs annually in the fuel sector due to unauthorized receipts and invoices worth 75 billion lira in 2022 alone. With the implementation of the National Vehicle Recognition System, an important step will be taken to prevent tax loss at fuel stations by preventing manual plate entry and thus the issuance of unauthorized fuel receipts."

Şimşek stated that there are 29 million vehicles in the country, including individual vehicles, and emphasized that individual vehicles can voluntarily participate in the system in the first place.

"ALL FUEL SUPPLY INFORMATION WILL BE STORED"

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

Şimşek pointed out that the stakeholders within the scope of the system will also launch a portal and a call center where they can enter information, data, transactions, and operations, and said that there will be data centers where all kinds of data produced within the scope of the application can be transferred, stored, analyzed, and monitored electronically. Şimşek stated that the devices and vehicle information are linked to each other for the automatic fuel purchase process of vehicles from stations, and emphasized that the information of pumps, cash registers, fuel stations, and fuel distribution companies are also linked. Şimşek explained that the devices and modules throughout the entire fuel supply process communicate securely with each other, saying, "All information will be stored securely to verify fuel supply transactions."

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

Minister Şimşek also made warnings to the sectors included in the scope of the application, stating the following; "Taxpayers operating fuel stations are obliged to install the device on at least one nozzle unit of the pump by the end of the year. With the National Vehicle Recognition System, it is mandatory to install the vehicle recognition unit on approximately 8 million vehicles acquired or included in operation through leasing by December 31. It is important for fuel stations to provide all kinds of support in the establishment and operation process of this system. The responsibility for preserving the connections made within the scope of the system and ensuring that the system is continuously online belongs to the taxpayer operating the fuel station."