Pledge obligation to the importer and car dealer

SAFAKNA TURKEY – The Official Gazette published the General Communique on Tax Procedural Legislation of the Revenue Department of the Ministry of Treasury and Finance.

The Communiqué set out the procedures and principles for the authority of the Ministry to obtain collateral from taxpayers involved in the sale of motor vehicles, as defined under the relevant law.

In this context, the scope of the guarantee included individual import taxpayers and their dealers who do not qualify as distributors of a particular brand of vehicle. Taxpayers within this area will have to provide a guarantee of 66 million Turkish liras in order to be able to import.

Paid-in capital requirement of at least TL 5 million

On the other hand, the same communiqué defined the conditions that individual importing taxpayers must meet in order to obtain the required document in order to be able to carry out import transactions without paying a special consumption tax.

Accordingly, these importers must have a paid-in capital of at least 5 million lire, have been trading in motor vehicles for at least three calendar years prior to the date of application for a certificate, and employ at least five workers or staff.

The criteria are that it has not been established that the importers used/issued forged/misleading documents within the last 5 years prior to the date of the documents request, or that the act or import transaction was presented to the judicial authorities on the basis that the judicial must be action has been taken by the customs administrations, and that there is no tax debt on the date of collection of the documents, they will need to be transported.

a surety can be a pledge

Taxpayers required to provide collateral will be able to provide as collateral money, perpetual and unconditional letters of guarantee issued by banks, perpetual and unconditional guarantees issued by insurance companies, government domestic debt securities or documents issued in lieu of these securities.

Distributors authorized to distribute and sell vehicles of the respective make under written agreements entered into by them with vehicle manufacturers or their dealers as part of their distribution activities do not bear any warranty obligations.

The communiqué will enter into force early next month.