What is Rent A Car Accounting?
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 practices, 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.
Are all vehicles subject to VAT reduction?
It's a common but incorrect assumption that car rental companies can benefit from VAT deductions for every vehicle registered in their assets. 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 handling rent-a-car accounting, VAT deductions can only be applied to vehicles acquired for commercial purposes.
What are the payment type limitations in rent a car companies?
Another important issue in rent-a-car accounting management is payment methods. A regulation enacted for public safety and oversight purposes mandated that, as of July 1, 2017, rental payments must be made through financial institutions without any amount limitation — cash payments are prohibited. Failure to comply results in penalties under the repeated Article 355 of Tax Procedure Law No. 213.
As of 2026, a broader rule adds to this: any payment or collection exceeding 7,000 TL must go through a bank, PTT, or a POS device. Non-compliance can result in a minimum penalty of 5,000 TL for each party involved in the transaction. For rent-a-car companies, this means cash collection is no longer viable even for short-term daily or weekly rentals.
What are the regulations coming in 2026?
Expense restrictions on passenger vehicles are revalued every year based on the annual revaluation rate. Under Articles 40 and 68 of the Income Tax Law, the limits applicable for the 2026 calendar year are as follows:
Regardless of the actual monthly rental cost, the maximum amount a company renting a vehicle can deduct as an expense is 46,000 TL (excluding VAT) per passenger vehicle. Any amount above this limit is treated as a non-deductible expense (KKEG), and the VAT on the excess portion cannot be deducted either. In other words, a company paying a monthly rental fee of 60,000 TL will not be able to claim the 14,000 TL above the limit as a deductible expense.
The same regulation limits how much of the running costs of a passenger vehicle — fuel, maintenance, repairs, insurance, and toll/bridge fees — whether owned or leased, can be deducted: only 70% of these expenses are deductible, with the remaining 30% treated as non-deductible. So, on a fuel expense of 1,000 TL, only 700 TL can be recorded as a deductible expense.
For businesses purchasing a new passenger vehicle, the combined Special Consumption Tax (SCT/ÖTV) and VAT amount that can be deducted directly as an expense is capped at 1,200,000 TL; anything above that is added to the vehicle's cost and depreciated over time. Commercial vehicles such as pickup trucks, panel vans (registered for commercial use), and trucks are fully exempt from these restrictions — 100% of their expenses remain deductible.
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 get support in fulfilling legal responsibilities such as accounting. Titarus is a platform that lets you manage fleet management, portfolio management, and customer relations. Titarus also offers extensive support for rent-a-car accounting, equipped with tools built for this specific need. Since the software updates itself in line with constantly changing legal regulations, you won't run into difficulties keeping your rent-a-car accounting compliant. With cloud technology, you can monitor accounting processes, edit records, and generate reports in real time — even away from the office.
