The National Vehicle Recognition System (UTTS) is a system developed to combat the informal economy in the fuel sector and prevent tax losses. This system aims to minimize irregularities in the sector by making fuel purchase and sales transactions more transparent and auditable.

Objectives of UTTS

UTTS is designed as a solution to various issues in the fuel sector. Its primary objectives include:

• Preventing the Informal Economy: UTTS aims to eliminate unregistered fuel transactions by digitizing fuel purchase and sales processes. This allows authorities to detect tax evasion and fraudulent activities.
• Reducing Tax Losses: Since fuel sales are digitally recorded through UTTS, tax evasion is prevented, and government tax revenues increase, ensuring tax fairness.
• Ensuring Fair Competition: By eliminating unfair profits gained through unregistered transactions, the system creates fair competition conditions within the sector.
• Data Analysis and Monitoring: UTTS enables the collection and analysis of fuel consumption data, allowing sector-related decisions to be made based on more accurate information.

How Does UTTS Work?

UTTS operates in synchronization with fuel station pump systems, payment recording devices, and special recognition units integrated into vehicles. The system functions through the following steps:

• Vehicle identification units or license plate recognition systems automatically register vehicle information during fuel purchases.
• This data is transmitted to the central system of the Revenue Administration.
• Full synchronization is achieved with fuel pumps and cash registers, ensuring that all transactions are automatically recorded.
• Businesses can perform real-time fleet management and fuel consumption analysis using UTTS.
• Every fuel purchase is automatically reported, invoiced, and audited under this system.

Who is Required to Use UTTS?

UTTS is mandatory under certain legal obligations.

• It is required for individual and corporate taxpayers.
• Private vehicle owners who do not deduct fuel expenses from their taxable income are not required to use the system.

What Happens If UTTS Is Not Installed?

Commercial vehicles and fuel stations that do not comply with the UTTS installation requirement may face serious penalties. Some potential consequences include:

Invalidation of Fuel Purchase Documents:

• As of January 31, 2025, fuel purchase documents for commercial vehicles without a UTTS system will be considered invalid under the Tax Procedure Law. This means businesses will lose the ability to document fuel expenses and benefit from tax deductions.

Restrictions on Fuel Purchases:

• Commercial vehicles without UTTS may not be able to refuel at certain fuel stations. Some stations may refuse service to vehicles that do not comply with the system.

Administrative Penalties:

• Businesses that fail to comply with UTTS regulations may face administrative fines and legal penalties. These penalties cover both tax-related violations and unregistered fuel purchases.

Where to Get UTTS Installed?

UTTS can be installed at authorized fuel stations and designated service centers. To ensure proper operation and security, vehicle owners should visit authorized dealers approved by the Energy Market Regulatory Authority (EPDK). Installation is usually completed quickly, and the system becomes operational immediately. Before installation, vehicle owners must ensure they have their vehicle registration and necessary documents ready.

Benefits of UTTS

UTTS is not only beneficial for government tax monitoring but also provides significant advantages for businesses and the fuel sector.

• Facilitates fuel expense tracking: It improves fleet management efficiency and provides detailed fuel consumption analysis for businesses.
• Enhances tax transparency: By recording all transactions, it helps businesses fulfill their tax obligations more efficiently.
• Prevents unfair competition: It eliminates unauthorized fuel sales, fostering a fair competitive environment.
• Simplifies accounting processes: Automatic digital recording of fuel purchases speeds up business accounting operations.

The National Vehicle Recognition System (UTTS) is a system developed to combat the informal economy in the fuel sector, prevent tax evasion, and establish fair competition conditions. By offering significant financial and operational benefits for businesses, UTTS also strengthens economic oversight by increasing government tax revenues. As UTTS adoption expands, the goal is to create a more transparent and reliable commercial environment in the fuel industry.