Even though Turkey has its eye on being a member of the European Union, there are quite some differences. On such difference is the way e-invoicing is shaped. Firstly e-invoicing will become mandatory for certain companies as from 1 september 2014. Secondly, the Turkish Revenue Administration acts as a hub. Thirdly, e-signatures are required. And fourth E-invoicing Service Providers need formal approval. Time for an overview.
E-invoicing in Turkey in general
The GIB (Gelir ?daresi Ba?kanl???), or Turkish tax system, is responsible for defining the current electronic invoicing framework in Turkey, such as the accepted ways of sending, receiving and archiving e-invoices and related documents.
The Turkish electronic billing system in Turkey may be freely adopted by companies. However for certain companies it is compulsary, like those operating in the hydrocarbon sector or with products subject to special taxes (tobacco alcohol and light beverages).
In addition, taxpayers who fall within the scope of the needs of electronic invoicing are required to deliver their legal books in electronic format (e-ledger) by September 1, 2014.
Sending and receiving e-invoices in Turkey
Here some more rules regarding electronic invoicing in Turkey:
- Electronic invoice issuers must register as such with the TRA (Turkish Revenue Administration) or Turkish tax authority.
- Every electronic invoice issuer automatically becomes a receiver and must except electronic invoices sent by any other registered user.
- In contrast to the European model, sending does not take place integrally from the issuer to the final recipient. In Turkey, the TRA (Turkish Revenue Administration) acts as the system hub, running a platform to which issuers send their invoices, whereupon the tax authority become responsible for forwarding them to the receiver via web services.
- In terms of invoice format, an XML format has been designed with Turkish extensions (UBL-TR), intended as a single common format for all Turkish stakeholders.
- To ensure document authenticity and integrity, the use of electronic signature is required, based on the Financial Seal or electronic certificate issued by “The Scientific and Technological Research Council of Turkey”. Signing may be performed with the issuer certificate, or else by delegated signature through a service provider.
Being an electronic invoicing service provider in Turkey
E-billing service providers in Turkey must have government authorization, which is only granted if, among other criteria, the business has a registered Turkish company name and has its main operations for Turkey in Turkey.
EDICOM has developed the necessary modifications to its e-Invoicing platform to meet the demands of the Turkish model. Likewise, an agreement has been reached with authorized e-invoicing service provider ISIS for signature and forwarding to the TRA platform.
From now on, all EDICOM’s clients who need to issue electronic invoices in Turkey can do so totally transparently and with all the assurances required by Turkish legislation.
Taxpayers who fall within the scope of the needs of electronic invoicing are required to deliver their legal books in electronic format (e-ledger) by January 1, 2015.
September 1, 2014 is final date for filing application to TRA.
It must be noted that Turkish e-invoicing is currently is only for domestic trade and reserved for registered e-invoicing system users. Foreign trade invoices are currently out of scope.