New Regulations in the Fight Against the Informal Economy: Penalties for Old POS Devices

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

The Ministry has started implementing many measures, such as ensuring that financial documents like retail sales receipts and invoices are prepared accurately and on time, and expanding card payment options, in the fight against the informal economy.

With the application launched by the Ministry in 2013, it was foreseen that new generation payment recording devices would be used by combining portable EFT-POS devices that allow payments with bank cards in retail businesses and payment recording devices that issue receipts.

Thus, collections made with bank cards through new generation payment recording devices began to be issued as a single document, integrating the slip and the payment recording device receipt.

ABUSE IS BEING PREVENTED

This situation has helped prevent abuses such as collections made through portable EFT-POS devices remaining off the books, lending money in violation of regulations through these devices, or issuing receipts or invoices in the names of individuals different from those who made the purchases. With the application, it was planned to end the use of these POS devices and old generation payment recording devices within a calendar and to start using new generation payment recording devices with EFT-POS features. Due to the inability to fully achieve this transformation, a communiqué published on December 30, 2023, decided 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 through new generation payment recording devices. Additionally, special penalty regulations were made regarding issues such as making collections using the names or accounts of others, using payment systems and devices belonging to others, and not providing taxpayers with devices and systems suitable for their situations due to the law change.

LETTERS SENT TO BANKS, LETTERS SENT TO TAXPAYERS

Upon detecting that portable EFT-POS devices were still being used by taxpayers, the Ministry took action and wrote to all banks and payment institutions. In the letter, it was requested that the use of portable EFT-POS devices, which were incorrectly provided to businesses offering retail goods and services in the past, be terminated, that these devices be collected from taxpayers, and that new generation payment recording devices or devices with secure financial application systems be provided instead.

During the inspections, SMS and letters were also sent to taxpayers who were found to be using portable EFT-POS devices, despite the prohibition on their use. The Ministry requested the termination of the use of these devices, their return to banks or payment institutions, the provision of new generation payment recording devices or devices with secure financial application systems instead, and the acceptance of payments with bank cards through these devices.

THE LOWEST FINE IS 20,000 TL

As a result of these actions, separate fines will be imposed for each detection on taxpayers who continue to use prohibited portable EFT-POS devices: 20,000 lira for those keeping books on a balance sheet basis, 10,000 lira for those keeping books on a business account basis, and 200,000 lira for banks and payment institutions that do not collect these devices from taxpayers. Additionally, taxpayers who do not allow payments with bank cards through new generation payment recording devices will also be fined 20,000 lira or 10,000 lira for each detection.

"PENALTIES WILL BE IMPOSED ON TAXPAYERS AND BANKS"

Minister of Treasury and Finance Mehmet Şimşek stated that they are resolutely continuing their efforts to ensure fairness in taxation, address areas that remain off the books, and increase compliance with tax regulations.

Şimşek noted: "Ending the use of faulty POS devices, collecting these devices from taxpayers, and providing new generation payment recording devices instead is crucial in the fight against the informal economy. Penalties will be imposed on taxpayers and banks and payment institutions that do not make this change. Our Ministry is determined to continue its efforts to combat informality in retail trade without interruption."