Select another country or region to see products specific to your location.
TRY IT FREE FOR 15 DAYS
WITHOUT PROVIDING CREDIT CARD INFORMATION
EN
Rent A Car Accounting New Regulations

Rent A Car Accounting New Regulations

Like every taxpayer, rent-a-car companies have responsibilities determined by tax procedures and laws. While handling rent-a-car accounting, various sector-specific regulations, in addition to standard applications, must be considered. The size of the operation each accounting department must manage varies depending on the number of vehicles and the customer portfolio. Therefore, updated and changing legal regulations should be taken into account during accounting management, and the established standards should be accurately reflected in the process.

Rent A Car Accounting New Regulations

What is Rent A Car Accounting?

Like every taxpayer, rental car companies have responsibilities defined by tax procedures and laws. While accounting for rental cars, various industry-specific regulations are taken into account, as well as standard practices. The size of the operation each accounting department must manage varies depending on the number of vehicles and customer portfolio. Therefore, when managing accounting operations, updated and changing legal regulations must be taken into account, and established standards must be accurately reflected in the process.

Are all vehicles subject to VAT reduction?

The common and misconception that car rental companies can benefit from VAT deductions for all types of vehicles registered in their assets is incorrect. According to Article 30/b of the VAT Law, it is not possible to benefit from VAT deductions for vehicles purchased for non-commercial purposes. When accounting for a car rental , VAT deductions can be applied to vehicles purchased for commercial purposes.

What are the payment type limitations in rent a car companies?

Another important issue in rental car accounting management is payment methods. A regulation, generally enacted for public safety and intelligence purposes, mandated that rental payments be made through financial institutions without any amount limitations after July 1, 2017. In this case, cash payments are prohibited. The Antalya Tax Office Directorate's special notice dated August 10, 2017, numbered 77058783-105[VUK.ÖZ.17.28] – 117763, clarified that depositing rental payments to a bank in the customer's name also violates the aforementioned circular. Failure to comply with this regulation will result in penalties under Article 355 of Tax Procedure Law No. 213. While this situation certainly presents a challenge for rental car companies, no concrete steps have been taken to amend the relevant regulation.

What are the regulations coming in 2020?

As is known, Law No. 7194 was enacted upon publication in the Official Gazette No. 30971 dated December 7, 2019. Articles 40 and 68 of the Income Tax Law introduced various restrictions on passenger vehicle expenses in the taxation of commercial and self-employment income. This regulation has made accounting records for companies renting from car rental companies more complex. Accordingly, regardless of the monthly rental expense, the upper limit for expenses incurred by the car rental company is 5,500 TL. Any expenses exceeding this limit are considered non-deductible expenses (KKEG). In other words, a company paying a monthly car rental fee of 10,000 TL will not be able to claim the 4,500 TL above this limit as expenses.

The same law also stipulates that fuel expenses for passenger cars (whether leased or registered as assets) must be shown as expenses, but the portion of fuel expenses that can be shown as expenses covers 70% of the total amount. Accordingly, if a fuel expense of 500 TL is spent, the amount that can be shown as expenses is 350 TL.

What tools can be used for rent a car accounting?

Rent-a-car companies can acquire software that allows them to manage their operations and receive support in fulfilling their legal responsibilities, such as accounting. Titarus is a software that allows you to manage functions such as fleet management, portfolio management, and customer relations. Titarus also offers numerous services for rent-a-car accounting, equipped with the tools to provide all the support you need in this area. With the software, which updates itself according to constantly changing legal regulations, you won't experience any difficulties with rent-a-car accounting. With cloud technology support, you can monitor rent-a-car accounting processes in real time, edit your records, and generate reports even when you're away from the office.

LATEST BLOG POSTS

What is Car Rental Software? - What Does It Do?

For years, car rental businesses have struggled with the invisible costs of manual processes and old-school record keeping: long phone calls to book reservations, contracts filled out by hand with a high margin of error, customer information lost in scattered files—all of which can slow down your operational speed over time.

What is Fleet Management and What are its Advantages?

Fleet management plays a critical role in the success of your business, especially if your field operations are intensive. So, what is fleet management and how does it contribute to your business? In this blog post, we will touch on the intricacies of fleet management solutions and fleet tracking, and discover the advantages we offer you in this area as Titarus.

Filo Kiralama Programı Nedir? İşletmenize Kazandırdıkları

The fleet rental program allows companies to track all processes of vehicles they own or rent from external sources – rental, usage, maintenance, insurance, contract and return – through a central system.

What is the Car Rental Program? All Details

The car rental program increases operational efficiency by facilitating processes such as fleet management, reservation tracking and billing. ERP software integrates these processes in a central system, optimizing data management, reducing costs and increasing customer satisfaction. With the right ERP selection, car rental companies can make more strategic decisions and gain competitive advantage.

What is Rent A Car Tracking Program? All Details

Rent A Car tracking program is a software that increases operational efficiency by digitizing vehicle rental processes. It saves businesses time and costs by automating processes such as vehicle tracking, reservation management, billing and customer records. Thanks to its integration options, it works in harmony with accounting, online payment and vehicle tracking systems, making processes faster and more reliable. Choosing the right software provides businesses with competitive advantage and sustainable growth.

Important Car Fault Signs and Their Meanings

Driving a vehicle is not only comfortable but also brings with it various risks. For a safe and comfortable ride, the driver must remain constantly alert to both the general condition of the vehicle and potential malfunctions. Today's vehicles are equipped with many warnings on the dashboard to ensure safe driving.

Advantages and Disadvantages of Diesel and Gasoline Vehicles

Owning a car today directly impacts the quality of life in a positive way. However, owning a car comes with certain costs and various advantages and disadvantages depending on the type of fuel your chosen car uses. In this article, we will delve into the advantages and disadvantages of diesel and gasoline vehicles, providing an in-depth examination of both types.

What are HGS and OGS Vehicle Classes?

The class of the vehicle is important when purchasing OGS (Automatic Toll Payment) or HGS (Fast Toll Payment) stickers for use on toll roads, such as bridges and highways. Vehicles are categorized into several classes, which are:

Car Rental and CRM Program

The Car Rental and CRM Program is software designed to help car rental companies identify the needs of their current and potential customers, develop strategies accordingly, and significantly control costs.

Things to Consider While Creating a Fleet

Things to consider when creating a fleet include the rules that must be followed by both car rental companies and businesses with extensive service networks. Understanding the causes and consequences, which we will explain shortly, can help you make profitable decisions when purchasing vehicles and simplify the process of selling them when necessary.

What is Periodic Vehicle Maintenance? How Should It Be?

Periodic vehicle maintenance includes all processes conducted at intervals determined by manufacturer guidelines. This maintenance involves changing and repairing vehicle parts and fluids as needed. It positively impacts both the vehicle's lifespan and safety.

How Should Vehicle Cleaning Be Done?

Turkey has been fighting the coronavirus for about a year and a half. Various measures, such as bans, closures, and personal precautions, have been implemented to slow down the spread of the virus. While personal hygiene is a crucial factor in combating the virus, maintaining the hygiene of the cars we drive is equally important.

What is a Rental Vehicle Tracking System?

The rental vehicle tracking system is a system that allows rent-a-car companies to send information to the center via a GPS connection from a small device installed in their vehicles. It also provides instant tracking with location notifications. For car rental companies, cost and safety are very important considerations, given the value of the cars they rent.

What is Required to Open a Rent A Car Company?

The Rent-A-Car Working System can evolve based on the company's corporate structure, sector conditions, and other factors. Each company develops unique strategies and operational principles according to its internal dynamics. This principle also applies to rent-a-car companies, which may adapt their systems and processes to meet their specific needs and market conditions.

Rent A Car Working System

The working system for rent-a-car companies may evolve periodically based on the company's corporate structure, industry conditions, and other factors. As is well known, every company develops strategies and working principles tailored to its internal dynamics. This holds true for rent-a-car companies as well.

TürkçeEnglish