Before the law numbered 7194 came into force, the expenses of the passenger vehicles used for the activity of the company registered in the operating assets could be recorded as expense excluding the motor vehicle tax. But after the law numbered 7194 came into force, some restrictions were made. In the justification of the law, it was stated that the expenses of passenger cars used for personal expenses for which the application was abused can be recorded as an expense. This new regulation made; it concerns all passenger cars except those used by those whose activities are partially or wholly rented or operated in various ways. Let's examine the restrictions that came into effect under four main headings;
Passenger Car Rental Expense Restriction: 5.500 + VAT of the monthly rental value for each of the passenger cars acquired by renting will be considered as expenses, and the exceeding part will be recorded as an unacceptable expense.
Example: For a rented passenger vehicle, 6.500 TL + VAT rent is paid monthly.
Monthly Rental Price 6.500 TL
VAT 18% 1.170 TL
Grand Total 7.670 TL
Solution:
Section to be written as expense 5.500 TL
Downloadable VAT 990 TL
The legally unacceptable expense is 1.180 TL.
Restriction in Passenger Car General Expenses: 70% of the general expenses (Fuel, Insurance, Traffic, Repair, and Maintenance…) related to the passenger cars registered or acquired by rental will be written as expense and VAT corresponding to this section will be subject to deduction, 30% The portion and VAT will be recorded as an expense that is not accepted by law.
Example:
Passenger car monthly fuel expense: 1.000 TL
VAT hitting 18%: 180 TL
Grand Total: 1.180 TL.
The expense to be written: 700 TL
VAT to be downloaded: 126 TL
Legally unacceptable expense: 354 TL.
Note: All of the Motor Vehicle Tax is the expense that is not accepted by law.
Tax and VAT Restriction on the First Acquisition of Passenger Cars: The upper limit for the sum of the SCT and VAT directly related to the acquisition of passenger cars has been set. This amount is 140.000 TL for 2020. The part exceeding this amount will be recorded as an unacceptable expense.
Depreciation Limit: The upper limit has been introduced in the expense posting of the depreciation reserved for the passenger car acquired. The portion of the depreciation related to each of the passenger cars, the first acquisition price excluding SCT and VAT exceeding 160.000 TL or 300.000 TL including these taxes, can be written as an expense. Amounts exceeding this limit will be recorded as an unacceptable expense.
For second-hand vehicle purchases, depreciation may be reserved for 300.000 TL of the vehicle price including VAT. Amounts related to depreciation will be increased each year by increasing the revaluation rate. However, in the implementation of this provision, the same amount will be taken into account during the depreciation period, and the depreciation will be separated from the amount in effect on the first acquisition date.