Official Letter to the Bartın Tax Office Directorate of the Ministry of Treasury and Finance of the Republic of Türkiye on the Tax Recording Procedures for Income from Scrap/Total-Loss Vehicles

Within the scope of the work of the Professional Committees of the Bartın Chamber of Commerce and Industry and meetings with members, our members operating in the insurance sector have informed us that uncertainties are being experienced in practice as to how income obtained from the sale or disposal of vehicles designated as scrap or classified as total loss should be treated for tax purposes.

In the feedback received from our members, it was stated that there is no uniformity of practice as to which accounting records will be used to monitor such income, which types of documents must be issued and to which income/account items it should be recorded. It was assessed that this situation reveals a need for explanatory guidance in order to keep records correctly and prevent possible tax disputes.

In this framework, a request that information be shared with our Chamber regarding how income obtained from scrap/total-loss vehicles will be assessed for tax purposes, the types of documents to be issued within the scope of these transactions, the account codes and income items to be used in accounting records, and the principles of practice adopted by your Directorate in this regard has been submitted to the Bartın Tax Office Directorate by official letter.

The Bartın Chamber of Commerce and Industry continues its work in cooperation with relevant institutions in order to ensure that its members are guided in compliance with the legislation and to contribute to resolving uncertainties experienced in practice.