How to Electronically Invoice in Turkey
The Turkish Revenue Administration (TRA) has published a draft law with changes to current tax obligations in communique 509. The goal is to continue the progressive adoption of the e-Fatura and e-Arsiv.
These changes are relevant to companies that are already obligated to issue and declare invoces to the TRA.
The electronic invoice has been mandatory in the Turkish B2B sector since 2014, when a massive incorporation of businesses according to their turnover has began.The mandatory use of the electronic invoice has now been extended to the public sector.
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New Tax obligations
Since March 2021 all public entities have the obligation to receive electronic invoices. Suppliers with a turnover over 5 million TL registered to the TRA, will now be able to identify their e-invoices by indicating KAMU These suppliers can issue invoices to public companies by indicating KAMU in the invoice.
New tax obligations as of July 2021
All public and private institutions that have an agreement with the SGK public healthcare system must declare e-Fatura and e-Archive invoices to the TRA.
Currently all companies in the B2B environment with an invoice volume surpassing 5 million Turkish Liras must issue electronic invoices.
New tax obligations as of July 2021
All companies without the obligation to register in the TRA must declare all invoices with a value of 5000 TL or with a daily invoice volume above 30 000 TL a day using the e-Arsiv format.
The declaration of e-Adisyon electronic tickets becomes mandatory. Companies in the service sector (tourism – restaurants) that issue paper tickets must now declare them in the e-Adisyon electronic format. The TRA will publish a list of affected companies that must comply with the new regulation within three months of its publication.
Other foreseen changes
We expect that the e-Gider Pusulu electronic expense notes will need to be declared as an obligation shortly. Currently they only need to be reported on a voluntary basis.
The Electronic Invoice in Turkey: e-Fatura and e- Arşiv
The electronic invoicing system in Turkey has two different types of invoices. The first type is the e-Fatura, it is the electronic invoice used for B2B transactions between companies registered in the TRA. The second type is the e-Arşiv, the electronic invoice used for B2B and B2C transactions with companies not registered in the TRA. Currently, all Turkish companies with a yearly invoice volume of 5 million Turkish Liras or more must issue the e-Fatura and e-Arsiv depending on the registration status of the invoice recipient. Since January 1st all companies registered in the TRA must declare the e-Fatura and the e-Arsiv.
All companies with an invoicing amount above 5 million Turkish liras must issue and declare the e-Fatura. As of July 2022, all companies that invoiced over 4 million TL in 2021 will have to issue and declare e-Fatura. As of July 2023 companies that issued over 3 million TL in 2022 will also have to comply.
The e-Arşiv Fatura are the electronic invoices that must be issued to all clients who are not registered in the TRA. The obligated companies must send these invoices electronically to the intended recipients. This implies a great challenge since many recipients do not have integrated solutions. To solve this challenge EDICOM offers companies the opportunity to publish e-Arşiv Fatura to those clients through the Business@mail invoice publication platform where they will be able to download and search their invoice. The invoice publication is completely automatic and integrates with your management system. Every time an electronic invoice is sent, the recipient will receive an email notifying them that the invoice is available in the platform. The solution offers a set of notifications that inform the issuer about the status of the invoices guaranteeing complete control of communication flows with clients.
E-Irsaliye – E-Waybill
e-Irsaliye, e-Delivery or electronic waybills must be declared to the TRA portal by the companies that must declare electronic invoices.
The draft law also makes it mandatory to issue e-waybills and will become mandatory for companies that invoiced more than 10 million TL in 2021.
Requirements to electronically invoice in Turkey
- Companies that want to invoice electronically in Turkey must register in the TRA with their VKN tax id.
- Companies must also complete a series of documents published in the government portal. It will be your fiscal advisor who will determine exactly what information you must report.
- Companies must have a moral person digital certificate and a digital seal for the entity in question to be able to identify themselves to the TRA and to guarantee security in all operations realized in their portal.
How Does the e-Invoicing System Work in Turkey?
Turkey has imposed a centralized B2B2G e-invoicing system through the Turkish Revenue Administration’s (TRA) portal.
Once authorized by the TRA companies must report invoices in UBL-TR 1.2 format. This process is performed automatically and instantaneously through our EDICOM GLOBAL E-INVOICING Platform. Our solution will receive data from the ERP and then will transform it into the correct format. Once validated they will be reported to the TRA. Once the TRA approves the message the invoicing document will be sent to the recipient.
It is mandatory to securely archive electronic invoices for 10 years. The secure archiving solution must guarantee the integrity of the documents for the entire storage period through the digital signature of the archived documents according to the national standard.
The Global e-Invoicing platform enables the centralized, automatic, and secure issuance and reception of any electronic invoice regardless of the country of operation. The platform can adapt the documents to the current legislation in every country. GLOBAL E-INVOICING can also exchange any kind of commercial document like the e-Irsaliye.
Evolution of the Electronic Invoice in Turkey
The electronic invoice process in Turkey began in 2010 with the approval of the Tax Procedure Law (VUK) which gave the electronic invoice legal equivalence to paper invoices. In 2014 the mass adoption of the electronic invoice began, and since then groups of companies have been obligated to issue all invoices electronically, depending on their annual turnover and business sector. Currently the mass adoption of the electronic invoice is being enforced in the public sector.
- 2011 – Companies in the oil, alcohol, and tobacco sector were the first to be obligated to issue e-invoices.
- 2014 – Companies that invoice more than 25 million TL
- 2016 – Companies that invoice more than 10 million TL.
- 2019 – Companies than invoice more than 5 million TL.
- 2020 – The declaration of the e-waybill e-Irsaliye for all electronic invoice issuers.
- 2021 – All public entities must be able to receive e-invoices.
- 2021 – All private or public entities of health sector that have an agreement with SGK
- 2021 – All companies that do not have the obligation to register in the TRA should declare invoices with a total of 5000 TL or more in e-Arsiv Fatura format.
- 2022 – As of July 2022, all companies that invoiced over 4 million TL in 2021 will have to issue and declare e-Fatura.
- 2023 – As of July 2023 companies that issued over 3 million TL in 2022 will also have to comply.