The issue of which companies will use BA and BS reconciliation (BA stands for ‘Bildirim Alacak’ which means ‘Notification for Purchases’ and BS stands for ‘Bildirim Satacak’ which means ‘Notification for Sales’), which is one of the types of reconciliation, under which conditions and in what way may cause confusion in practice from time to time. Within the scope of this article, we will briefly discuss the definition and application procedures of BA/BS Reconciliation and penal sanctions in line with the relevant legislation and the explanations on the website of Turkish Revenue Administration (Gelir İdaresi Başkanlığı – GİB).

Taxpayers who keep books on the basis of balance sheet are obliged to report their purchases of goods and/or services from a person or institution (excluding VAT) of 5.000 TL and above – Notification Form for Purchases of Goods and Services (Form Ba) – Notification Form for Sales of Goods and Services (Form Bs) (taking into account the amounts excluding VAT).

In the application of the said limits, value added tax in the purchase / sales of goods and / or services subject to special tax base. In transactions subject to special consumption tax, the amounts including special consumption tax will be taken into account. In cases where income tax withholding is also included in the documents, the gross amounts before withholding will be taken into account.

BA and BS Reconciliation

Taxpayers who are subject to the balance sheet basis and who are obliged to report their purchases/sales within a one-month period. In the event that their purchases/sales are below the limit determined by the Communiqué or if they have no purchases/sales, they are required to submit the said forms by filling in all the information.

All kinds of purchases and sales of goods and / or services made by taxpayers who are obliged to notify will be included in the BA-BS notification forms regardless of the type of document related to them.

Taxpayers are obliged to organize these notification forms in monthly periods and send them by approving them through the system from the first day of the following month until 24:00 on the evening of the last day of the following month.

In the event that the notification forms are not submitted within the specified periods, incomplete or misleading notification is made. Taxpayers will be penalized in accordance with the provision of Article 355 of the Tax Procedure Law No. 213. In the application of the said penalty, BA and BS notification forms will be considered as a single form and a single special irregularity penalty will be imposed.

If taxpayers determine that there are errors or deficiencies in their notifications after sending and approving them electronically. They can make corrections by reorganizing and sending

them again. If it is determined that an error is made in any of the Ba and Bs notification forms, only the notification form with the error should be corrected and sent.

No penalty will be applied for the corrections made within the period of submission of the notifications, and for the corrections made after this period has passed, action will be taken in accordance with the provision of the repeated Article 355 of the Tax Procedure Law, separately for each corrected form.

If the notification forms given for correction purposes are submitted within 10 days from the end of the specified periods, no special irregularity penalty will be imposed. If it is submitted within the following 15 days, the special irregularity penalty to be imposed is applied at the rate of 1/5.

BA and BS Reconciliation is widely used in practice in terms of its scope. Pursuant to the relevant provision of the Tax Procedure Law, it is clear that penalties will be applied if these forms contain incomplete or misleading information. Companies using the application are given time to correct any errors made in the notification forms. When using BA and BS Reconciliation in your company, you can get this service from Melasoft e-Reconciliation Portal in order to fully comply with the formal requirements, not to miss the specified times and to stay in full compliance with Turkish Revenue Administration (GİB). Please feel free to contact us with any questions you may have!