Like every taxpayer, rent a car companies also have responsibilities determined by tax procedures and laws. While rent a car accounting, various regulations specific to the sector are taken into consideration as well as standard applications. The size of the operation that each accounting department should manage varies according to the number of vehicles and customer portfolio. For this reason, updated and changed legal regulations should be taken into consideration while managing the accounting operation, and the determined standards should be reflected in the process.
As a general and wrong opinion, the idea that rent a car companies benefit from VAT discount for any vehicle registered in their assets is wrong. In accordance with the provision of Article 30 / b of the VAT law, it is not possible to benefit from the VAT deduction right for vehicles purchased for non-commercial purposes. While rent a car accounting is being processed, VAT discounts can be used for cars purchased for commercial purposes.
Another important issue in rent a car accounting management is payment types. In general, with the regulation made for public security and intelligence purposes, it was imposed that after 01.07.2017, lease payments should be made through financial institutions without any amount limitation. In this case, cash payment is prohibited. It has been stated in the regulation of Antalya Tax Office dated 10.08.2017 and numbered 77058783-105 [VUK.ÖZ.17.28] - 117763 that the collection made for leasing transactions is deposited to the bank on behalf of the customer, and in case the relevant regulation is not followed, the Tax Procedure Law No. 213 Penalty will be imposed under the repeated article 355. Of course, although this situation poses a challenge for rent a car companies, no concrete steps have been taken regarding the amendment in the relevant regulation.
As it is known, the Law No. 7194 was published and entered into force with the Official Gazette No. 30971 on 07.12.2019. Articles 40 and 68 of the Income Tax Law imposed various restrictions on passenger vehicle expenses in the taxation of commercial earnings and self-employment earnings. With this arrangement, accounting records for companies that rent from rent-a-car companies have turned into a slightly more complex structure. Accordingly, regardless of the monthly rental expenditure, the upper limit of the amount that the car rental company can expense is 5,500 TL. The portion of the expenditures above the specified amount above the limit is considered as KKEG (expenses not accepted by law). In other words, a company that pays a monthly rental fee of 10.000 TL will not be able to show the part of this amount above the limit of 4.500 TL as expense.
Again, in the article of the same law regulating the demonstration of fuel expenditures for passenger cars (leased or registered in assets) as expense; The part that fuel expenditures can be shown as expense covers 70% of the total amount. Accordingly, when 500TL of fuel is spent, the amount that can be shown as an expense is 350TL.
Rent a car companies can acquire software that can both manage their activities and get support while fulfilling their legal responsibilities such as accounting. Titarus is a software that you can manage units such as fleet management, portfolio management, customer relations. Titarus is also equipped with vehicles that will provide you with all the support you need in this field by offering many services for rent a car accounting. With the software that updates itself according to the ever-changing legal regulations, you will not have any difficulties in rent a car accounting. With the support of cloud technology, you can monitor your rent a car accounting processes in real time, organize your records and get reports when you are out of the office.