Electronic invoicing in Turkey

Peppol e-invoicing is not the standard use in Turkey.
Tax Authority
The tax authority in Turkey is the Revenue Administration, which is responsible for collecting and levying state taxes in accordance with constitutional law and tax legislation. The Revenue Administration has the responsibility of ensuring taxpayer rights are respected while fulfilling its mandate. Local authorities have certain rights over some minor transaction charges, but most taxes are imposed by the central government, acting through the Ministry of Finance. Taxes, duties, and charges in Turkey can only be imposed by law, as prescribed by Article 73 of the Constitution of the Republic of Turkey. The taxation system in Turkey includes individual income taxes, which are levied on an individual's or household's income to fund general government operations, and corporate taxes that are imposed under laws drafted by or with the involvement of the Turkish Ministry of Finance and promulgated by the Turkish Parliament. The tax rates for individual income and gains in Turkey are progressive and range from 15% to 40% on a cumulative basis. Companies in Turkey are responsible for withholding taxes on their payments and declaring them through their withholding tax returns. The Turkish Revenue Administration is under the organizational chart of Turkey's administrative system and is part of the Ministry of Treasury and Finance.
Invoice Obligation
Yes, e-invoicing is mandatory in Turkey for certain transactions and businesses. B2B e-invoicing has been mandatory for all but the smallest transactions since January 2020, and the type of e-invoice required depends on whether the business has registered with the Turkish Revenue Administration (TRA) or not. Companies that invoiced more than 10 million TL in 2021 are now required to issue e-waybills, and companies that want to invoice electronically in Turkey must register with their VKN tax ID with the TRA. E-arşiv invoices, used for transactions in which the recipient is not registered with the TRA portal, are obligatory for certain companies such as online advertisers and intermediary service providers since January 2020. In addition, all companies that do not have the obligation to register with the TRA must declare invoices with a total of 5000 TL or more in e-Arsiv Fatura format in 2021. From July 2022, all companies that invoiced more than 4 million Turkish Liras in 2021 will be required to issue and declare e-Fatura and e-Arsiv invoices. It is important to note that the electronic invoicing process in Turkey started in 2010 with the approval of the Tax Procedure Law (VUK), giving electronic invoices the same legal validity as paper invoices. Since then, different groups of taxpayers have been mandated to join the electronic invoicing system based on their annual invoice total.
Operating Model
Electronic invoicing in Turkey has been in use since 2010, and it has since undergone several regulatory changes. B2B e-invoicing became mandatory for all but the smallest transactions in Turkey in January 2020. E-invoicing is now a requirement for all taxable businesses that have reached the gross-to-turnover threshold in 2020 or 2021 of TL 4,000,000, and the threshold is expected to reduce to TL 3,000,000 in 2022. Such businesses are required to use e-invoicing starting from 1 July 2022, and e-Ledgers starting from 1 January 2023. The electronic invoicing system in Turkey has two types of invoices: e-Fatura and e-Arşiv. The former is the electronic invoice used for B2B transactions between companies registered in the Turkish Revenue Administration (TRA), while the latter is used for B2B and B2C transactions with companies not registered in the TRA. To send and receive compliant e-invoices in Turkey, businesses must register their VKN tax ID in the TRA portal and fill out the necessary forms published on the government portal. Companies must also issue e-arşiv invoices electronically to non-TRA registered customers. The e-waybill e-Irsaliye declaration is also mandatory for all electronic invoice issuers in Turkey.
Required Taxpayers
In Turkey, e-invoicing is mandatory for taxpayers with a gross sales revenue of TL 5 million or above in fiscal years 2018 or 2019. This includes both B2B and B2C transactions. However, from 1 July 2023, the annual sales threshold for the requirement to issue e-Fatura and e-Arşiv invoices will drop to TRY 3 million. It is important to note that the type of e-invoice issued is dependent on whether the business has registered with the Turkish Revenue Administration (TRA). Companies must register with the TRA using their VKN tax ID and submit the paperwork required by the government. Some companies, such as online advertisers and intermediary service providers, are also obligated to use e-arşiv invoices for transactions in which the invoice recipient is not registered at the TRA portal. Overall, it is important for businesses to comply with the regulations set by the Turkish tax system, GIB, for e-invoicing and the storage of invoices.
Normativity
In Turkey, there are several types of electronic documents that taxpayers must use, such as e-invoices (e-Fatura), e-archive invoices (e-Arşiv), e-ledgers (e-Defter), and e-waybills (e-rsaliye), according to a communiqué. The new regulations affect businesses based on their sector and total revenue. E-arşiv invoices are used for transactions in which the invoice recipient is not registered at the Turkish Revenue Administration (TRA) portal, and it became obligatory for some companies, such as online advertisers and intermediary service providers, after January 2020. E-waybills must be declared to the TRA portal by companies that must declare electronic invoices, and the draft law makes it mandatory to issue e-waybills for companies that invoiced more than 10 million TL in 2021. All companies that are not required to register with the TRA must declare all invoices with a value above TL 5,000 in e-Arsiv format as of July 2021. The Turkish tax system, known as GIB, is responsible for defining the national framework for e-invoicing, including how invoices are sent and received and their storage. The e-transformation system in Turkey covers applications such as e-invoice, e-ledger, e-arşiv, e-ticket, e-reconciliation, and e-delivery note. According to the General Communique, since it was first introduced in 2012, the e-invoicing mandate has grown, and companies are having to adapt in order to comply with requirements in 2020 and beyond.
Type of documents
Electronic invoicing in Turkey includes two primary types of documents: e-Fatura and e-Arşiv. The e-Fatura, also known as the e-Invoice, is an electronic invoice used for B2B transactions between companies registered with the Turkish Revenue Administration (TRA). The e-Arşiv is the second type of electronic invoice and is used for B2B and B2C transactions with companies not registered with the TRA. Additionally, other electronic documents, such as e-ledgers, e-waybills, self-employment receipts, producer receipts, delivery notes, bank receipts, and expense notes, are also covered under the regulations. These documents are treated with the same legal validity as paper invoices and are subject to regulations that impact businesses based on their sector and total revenue. It's worth noting that B2B e-invoicing became mandatory for all but the smallest of transactions in Turkey, as of January 2020.
Peppol Standard
Peppol e-invoicing is not the standard use in Turkey. The country has its own electronic invoicing system called e-Fatura and e-Arşiv, which are used for B2B transactions between companies registered in the Turkish Revenue Administration (TRA). In Turkey, an e-invoice cannot be sent directly from the issuer to the recipient; instead, it must be delivered using the TRA platform. Since the approval of the Tax Procedure Law in 2010, different groups of taxpayers have been mandated to join the electronic invoicing system based on their annual invoice total. Therefore, it is recommended for businesses that operate in Turkey to use an electronic invoicing system that is compliant with Turkish legal requirement
Standard Format
Turkey has two types of electronic invoices or e-invoices, namely e-Fatura and e-Arşiv. e-Fatura is the standard format e-invoice in Turkey and is used for business-to-business (B2B) transactions between companies registered in the Turkish Revenue Administration (TRA). On the other hand, e-Arşiv is used for B2B and business-to-consumer (B2C) transactions with companies not registered in the TRA. To send and receive compliant e-invoices in Turkey, businesses must register their tax identification number (VKN) in the TRA portal and fill up the forms provided on the government portal. E-invoices must be in the UBL-TR XML format and sent for approval to the Turkish GİB tax system. Once approved, the government will transfer the e-invoice to the customer, who can accept or reject it in certain cases. It is worth noting that there are different requirements and thresholds for e-invoicing in Turkey, and businesses should keep themselves updated with the latest regulations. For example, starting July 1, 2022, all taxable businesses in Turkey with a gross turnover limit of TL 3,000,000 or more are required to use e-invoicing and e-Ledger. Also, companies that invoiced more than 4 million Turkish Liras in 2021 must issue and declare e-Fatura and e-Arşiv.
We are a company acreedited by the OpenPeppol Authority

Global E-Invoicing

Need Any Help? or Looking for an Executive

Copyright 2023, EdifactMx. All Rights Reserved
× How can I help you?