E-invoicing is a process where businesses send invoices and payments electronically instead of through traditional means such as paper invoices and check payments.
E-invoicing streamlines the process of billing and payment between businesses and their customers, which is then validated by the government tax portal.
Similarly, e-Procurement is an online procurement system that helps government agencies and businesses procure goods and services online. The system offers a variety of features, including a search engine, a bid and proposal system, and a contract management system.
Over the last decade, e-invoicing and e-procurement have become accepted within the B2B2G business environment in Turkey.
If you are a B2B or B2G business established in Turkey and would like to learn more about e-invoicing and e-procurement in the country, you have come to the right place.
In this article, you will learn everything you should know about e-invoicing, e-procurement, and the benefits they offer businesses, including how to send and receive compliant e-invoices in Turkey.
Are e-invoicing and e-procurement mandatory in Turkey?
E-invoicing has been mandatory throughout Turkey's B2B sector since 2014. Due to the apparent benefits of electronic invoicing, the mandatory use of e-invoices is now applicable to the public sector.
Furthermore, on October 19, 2019, a new communiqué from the Turkish Revenue Administration (TRA) regarding e-documents was published in the Official Gazette. The Administration emphasized that the new communiqué's main objectives are to serve as a centralized repository for electronic documents and to remove any existing uncertainties in the associated legislation.
According to the communiqué, more taxpayers must switch to electronic documents such as e-invoices (e-Fatura), e-arşiv invoices (e-Arşiv), e-ledgers (e-Defter), and e-waybills (e-rsaliye).
The new regulations impact businesses based on their sector and total revenue. Documents that do not adhere to the new regulations won't be accepted as official documents, and companies that do so risk various penalties.
You can visit Storecove to see Turkey's e-invoicing details and the latest updates as far as 2023.
For e-procurement, it would have been much more automated if there was a Peppol authority in Turkey. However, e-procurement (e-İhale) is mandatory in Turkey.
On June 1, 2019, a new era for the Turkish public procurement system began by making e-procurement (e-İhale) mandatory in the country. Hence, bidders may submit the tender offers for public procurements only through the Electronic Public Procurement Platform ("EPPP").
This conforms with the government's new policy to use digital technologies to boost economic development and transparency in public services.
Characteristics of the electronic invoice in Turkey
Electronic invoices have been introduced into the Turkish market since 2014. The following are the characteristics of electronic invoices in Turkey:
Electronic invoices are obligatory
Businesses engaged in B2B transactions and generating a particular invoicing volume are mandated to employ electronic invoicing. Likewise, in the B2G environment, public agencies must be able to send and receive e-invoices, and their suppliers must be able to issue them if they are registered with the TRA.
Visit Turkey's e-invoicing compliance obligation to see the latest updates as far as 2023.
The Turkish Revenue Administration TRA is the tax authority over e-invoicing.
GIB: Gelir İdare Başkanlığı. 023
Businesses must register with the TRA
Companies must register with the Turkish Revenue Administration (TRA) using their VKN tax ID and submit the paperwork required by the government. In addition, a moral person's digital certificate, the company's digital seal, and the company’s registration need to be presented to the company’s notary.
UBL-TR 1.2 TEMEL/TICARET E-FATURA, UBL-TR 1.2. should be used only for export invoices.
The digital signature is mandatory
Digital signatures are mandatory and must be obtained using financial seals issued by the “The Scientific and Technological Research Council of Turkey” in conjunction with the Tax Authority.
Issuers and recipients must securely archive electronic invoices for at least ten years. All archived invoices must be digitally signed using the XADES standard of digital signatures.
In Turkey, an e-invoice cannot be sent directly from the issuer to the recipient. They must be delivered using the TRA platform.
Are you looking for an electronic invoicing system to help you with e-invoicing while guaranteeing complete compliance with Turkish legal requirements? Plan a demo with one of Storecove’s e-invoicing teams.
Benefits of e-invoicing for businesses in Turkey
E-invoicing is a great way for businesses to stay organized and efficient. By sending and receiving invoices electronically, companies save time and improve efficiency.
With that said, here are some benefits of e-invoicing for businesses in Turkey.
E-invoicing is cost-effective
E-invoicing can help to reduce costs associated with traditional invoicing, including costs related to printing and mailing invoices and the costs associated with employee time spent processing and issuing invoices.
E-invoicing obliterates the need for paper invoices, which can be bulky and difficult to manage for you and your customers.
E-invoicing saves time and effort and improves efficiency
E-invoicing can help businesses to improve their efficiency by allowing them to manage their billing and invoicing processes online. Furthermore, when companies send invoices electronically, they can avoid the hassles and delays of sending paper invoices saving time and effort.
Increased customer loyalty and trust
By providing customers with easy access to their invoices, customers are assured that their payments are being processed quickly and accurately, Which improves customer interactions and satisfaction.
E-invoicing increases accuracy in business transactions. This is because e-invoicing allows businesses to track and record each invoice's details for proper accountability.
Quick and easy transaction processing
E-invoicing makes transactions between B2B and B2G quick and easy. You can process transactions seamlessly without waiting for mail or faxes.
E-invoicing is secure and confidential
E-invoicing offers a more secure B2B and B2G transaction than paper invoices. This is because electronic invoices can be encoded and password protected. Therefore the risk of fraud and forgery is highly reduced.
How to send and receive compliant e-invoices in Turkey
There are two different systems used for sending and receiving e-invoices in Turkey. The first is the e-Fatura which is used for business-to-business transactions between companies registered in the Turkish Revenue Administration (TRA).
The other is the e-Arşiv, which is used for B2B and B2C transactions between companies not registered in the Turkish Revenue Administration.
All Turkish companies with an annual invoice volume of 5 million Turkish Liras or more must issue the e-Fatura and e-Arsiv, which also depends on the registration status of the invoice recipient.
It is essential to note that Turkey has a required centralized B2B2G e-invoicing system through its Turkish Revenue Administration (TRA) portal.
To send and receive compliant e-invoices in Turkey, follow the steps below.
Step 1: Register your business
To send and receive compliant e-invoices in Turkey, you must register your business VKN tax id in the TRA portal.
Step 2: Fill up the forms on the TRA Portal
Complete the sets of documents published in the government portal. Do note that your fiscal advisor determines what information you must report.
Step 3: Establish a digital certificate and a digital seal
Provide a moral person digital certificate and a digital seal for the entity in question to establish your business to the TRA and guarantee security in all operations done in their portal.
Step 4: Get authorization and use the proper invoice format
Get authorization from TRA and report invoices in UBL-TR 1.2 format. After the TRA approves the message, they will send the invoicing document to you.
Step 5: Archive electronic invoices securely
Securely archive electronic invoices for ten years using a solution that guarantees the integrity of the documents with the digital signature of the archived documents according to the national standard. (This is mandatory)
Storecove is a certified e-invoicing and e-procurement solution provider, meaning B2B2G can use our platform to send and receive e-invoices. You can speak to Dan to learn how we can help you securely issue or receive invoices in your country.
The Turkish government understands the benefits of e-invoicing cannot be overemphasized, which is why it was approved by the Tax Procedure Law (VUK) in 2010, gained mass adoption in 2014, and was extended to the public sector in March 2021.
Likewise, Turkey has been looking to implement the electronic-procurement system for a while now to improve the procurement process's reliability and transparency. Hence, e-procurement was made mandatory in the country.
The E-procurement system offers a more secure, efficient, and inexpensive solution to managing your procurement transactions.
In addition, tenders will become more efficient and affordable than ever for all parties interested in placing a bid on a public project.
Unlike the conventional method, e-procurement processes are more straightforward; tracking your bills and expenditures using the Electronic Public Procurement Platform is seamless, saving you time and money.
If you’re a business in Turkey looking for a safe and seamless electronic invoicing system that adheres to the financial and tax regulations surrounding e-invoicing in Turkey, Feel free to plan a demonstration with a member of our e-invoicing team.
More information about e-invoicing in Turkey?
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