Can those who closed their workplace while subject to the balance sheet method in 2023 and reopened in the same business line in 2024 use the business book?

If the same business line is started again, books must be kept according to the balance sheet method.

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In your special request form registered in the interest; it has been understood that you left your buffet business on 10.04.2017, and became a taxpayer again on 01.07.2017 due to carpet washing activities, and since you previously kept books according to the balance sheet principle in the buffet business, our Presidency’s opinion has been requested on whether you can have the books certified according to the business account as a second-class merchant due to the carpet washing business and whether you can continue the books you used in your previous business if you continue your new activity according to the balance sheet principle.

In Article 220 titled “Books subject to certification” of Tax Procedure Law No. 213, the books subject to certification are specified, and in Article 221 titled “Time of certification”, it is stated that “Those who will use the books specified in this law are obliged to have them certified at the times specified below:

Those who have been continuing the business for a long time, in the last month before the year in which the book will be used;
The accounting periods determined by the Ministry of Finance are as follows:

Those who start a new job, change class and enter a new liability, before the date of starting the job, changing class and entering a new liability; Those whose tax exemption is terminated, within ten days starting from the date of termination of exemption;
Those who are obliged to use new books during the year due to the fullness of the books subject to certification or other reasons, before starting to use them.”

On the other hand, Article 174 of the aforementioned Law titled “Accounting period” includes the provision that “Books are kept as of the accounting period. Records are closed at the end of each accounting period and reopened at the beginning of the following period.

The accounting period is normally the calendar year…”

According to the provisions given above, the books to be kept according to the merchant class to which they are subject are certified for the relevant accounting period in accordance with the Tax Procedure Law and during the period, in cases of quitting the job, starting the job again, voluntarily etc. In such cases, it is not possible to change the class in terms of bookkeeping, and therefore to switch from the business account principle to the balance sheet principle or from the balance sheet principle to the business account principle in the same accounting period.

In this respect, since you left your buffet management business, in which you kept books according to the balance sheet principle, on 10.04.2017 and started the carpet washing business on 01.07.2017, you must continue to keep books according to the balance sheet principle.

In addition, it is possible to continue to use the books remaining from your buffet management business, which you left as of 10.04.2017, in your carpet washing business, which you started as of 01.07.2017, by having them certified before the start date of the business in accordance with Article (221/3) of the Law.

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Source: Istanbul Chamber of Certified Public Accountants – Revenue Admins.
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