What is a tax certificate and where do you get it?

Hasan Abi's paper on the wall

Hasan Abi has run the neighbourhood grocery shop for years. His father taught him: "Hang the tax certificate by the window; if an inspector comes, that's the first thing they look at." Selim, who is opening a new grocery shop, asks: "Where shall I hang the certificate?" Hasan Abi laughed: "There's no duty to hang it any more, son, but the paperwork isn't over."

Hasan Abi is right. In this lesson we simplify both the old habit and the new rules.

What is a tax certificate?

The tax certificate (vergi levhası) is the document showing that you are registered with the tax office (vergi dairesi). It shows who you are, what work you do, your tax identification number and the tax office you are attached to. In a way, it is your workplace's "ID card".

Its basis is article 5 of the Tax Procedure Law (Vergi Usul Kanunu, VUK). In 2011 this article was changed by Law No. 6111; you no longer have to hang the certificate on the wall of your workplace. This applies to everyone who has to get a certificate, including tradesmen under simplified taxation (basit usul). But under VUK General Communiqué No. 408, you must keep the certificate at your workplace: at your head office, your branch, your sales shop; and in the vehicle if you run vehicles. You must show it when a tax officer asks. If you don't keep it, a special irregularity penalty (özel usulsüzlük cezası) may apply (VUK art. 353/4). Because the penalty amount changes every year, there is no figure here; ask your mali müşavir (accountant) for the current one.

Where do you get it?

You get the certificate online yourself. You don't pay a fee.

1. Log in to GİB's (Revenue Administration) Internet Tax Office site (ivd.gib.gov.tr) with your e-Devlet (e-Government) password.
2. Find the tax certificate (vergi levhası) option in the menu (it is usually under the enquiry options).
3. Save the document to your computer and print it out.
4. Keep the printout at your workplace, in a file or a frame from which you can show it.

You can print it as many times as you like. If you have more than one workplace, keep one at each.

Is the certificate renewed every year?

Yes. GİB's system creates the certificate again every year; and you get that year's certificate from the Internet Tax Office by 31 May each year at the latest (VUK General Communiqué No. 408). This also applies if you are under simplified taxation. Keep the current one, not last year's paper.

If you started business during the year, your certificate shows "New Start of Business" (Yeni İşe Başlama) instead of earnings. Under the same communiqué, you should get this first certificate within 1 month of your registration being opened, from the Internet Tax Office or through your tax office.

Who needs the certificate?

It isn't only the tax officer who asks for it. In some places you will still be asked for this document:

• Bank: when opening a business account or a POS (card payment) terminal, it may want to see that you are a registered business.
• Supplier: a wholesaler takes your tax details before issuing you an invoice.
• Landlord, municipality, chamber: it may be asked for in some applications.

Which body asks for which document varies; asking in advance is easiest.

Check what the certificate says

When you get the certificate, look at the information on it:

• Are your name and surname and your tax identification number correct?
• Does your type of business (activity code, faaliyet kodu) match the work you do?
• Is the address up to date?
• Is the tax office correct?

If anything is wrong, tell your mali müşavir or the tax office straight away. If you have moved, a change notification is also needed (an address change notification is a notification just like the start-of-business notification).

Selim's certificate

Selim gave the start-of-business notification and his registration was opened. A week later he logged in to the Internet Tax Office and got his e-tax certificate (e-vergi levhası). He put the printout in a file and left it in the drawer under the till. Hasan Abi asked: "Why didn't you hang it?" Selim: "I don't have to hang it, but it's ready in the drawer; if anyone asks, I can show it in a minute."

That is the right approach. Hanging it on the wall is up to you, and it even builds trust with customers. But what is compulsory is keeping it and being able to show it.

Where should you keep the certificate so you don't have to worry?

In Hasan Abi's shop, the certificate is in a file next to the till. He also has a copy on his phone, as a PDF. Ask your mali müşavir whether the PDF on your phone counts as "keeping" it. The safe way is to keep the printout at the workplace.

If you work with a vehicle (like a carrier), the printout should also be in the vehicle.

Two things that often get mixed up

The tax certificate and the tax number are not the same thing. The number is your identity; the certificate is the document that shows that identity.

The certificate and the workplace opening and operating licence (işyeri açma ve çalışma ruhsatı) are not the same thing. The licence comes from the municipality, the certificate from the tax office. (The "activity certificate" (faaliyet belgesi) you get from the chamber is a separate document too.) The two come from different bodies, for different purposes.

You can find the tax calendar, and what is filed when during the year, in the article Tax calendar (in Turkish). If you haven't given the start-of-business notification yet, go back to the lesson How do you register the start of business? first.

Summary

• The duty to hang it has been removed; the duty to keep it continues.
• The certificate is taken free of charge from the Internet Tax Office with e-Devlet.
• For the new year's certificate, you need to print it once a year.