Unregistered accounts selling via social media are subjected to tax audits
The Ministry of Treasury and Finance and the Revenue Administration are launching cross-check processes to examine commercial accounts that do not report their earnings on social media platforms.
The Ministry of Treasury and Finance and the Revenue Administration are increasing tax audits targeting accounts that make unregistered product and service sales through social media platforms. Bank account movements, cargo data, and digital payments are being subjected to cross-checks.
Scope of Audits and Targeted Activities
The Ministry of Treasury and Finance and the Revenue Administration are putting accounts that regularly sell products or services through social media platforms without integrating these activities into the tax system under close scrutiny. The audit is not solely based on social media posts; sales traffic, money transfers, and other commercial data are evaluated together.
Legal Obligations and Taxpayer Status
Earnings showing continuity and possessing commercial characteristics via social media can give rise to tax obligations. Those taking orders from platforms such as Instagram, TikTok, Facebook, and similar ones may be required to establish a taxpayer status and declare their earnings depending on the nature of the activity. However, the legislation also includes exemptions and special taxation practices for certain activities.
Penalties and Sanctions to Be Applied
If unregistered commercial earnings are detected during audits, unpaid taxes for past periods can be calculated. Delay interest and penalties within the scope of the Tax Procedure Act can be added to the principal tax. Depending on the nature of the act, tax loss penalties, irregularity, or special irregularity penalties may come to the agenda.
Financial Movements and Cross-Check Methods
Financial data obtained from banks and payment institutions can be used in tax audits. Regular money inflows to a person's account from numerous different individuals and the matching of these movements with sales activity on social media can become the subject of an examination. Cargo and logistics movements are also among important indicators in unregistered e-commerce investigations.
Exemptions and Retroactive Tax Procedures
Individuals selling certain products produced at home over the internet can benefit from artisan exemption if they meet certain conditions. A special earnings exemption can be applied for social content producers and individuals offering certain services over the internet. When unregistered activity is detected, taxpayer status can be established retroactively.