Electronic invoices and the complete switch to e-documents in Turkey

published on 8 May 2024 | reading time approx. 3 minutes

As part of the so-called switch to E-documents, Turkey has developed enormously in the area of business process digitalisation over the last decade. This switch was greatly accelerated during the pandemic. Almost all tax returns and notices are submitted electronically to the tax office across the country. The aim is to get rid of invoices and other ongoing documentation in paper form. Digitalisation started in 2010 when it first became possible to issue invoices electronically. In 2012, also the E-business ledger was introduced. This was followed by the digitalisation of E-delivery notes and E-Invoices for freelancers.

What electronic invoices are available? »
When are electronic invoices used? »
Do electronic invoices also apply to international business? »
How is it processed technically? »
What else is needed? »
Are there interfaces with the accounting system? »

What electronic invoices are available?

An electronic invoice is an invoice that is issued in a structured data format and transmitted and received via a corresponding portal. Electronic invoices are divided into so-called E-Invoices and E-archive invoices. E-Invoices are used by all taxable persons or legal entities that are registered in the E-Invoice portal (E-Invoice users). Only E-Invoices are issued to other E-Invoice users. E-archive invoices are issued to non-E-Invoice users (B2B and B2C) and are also used by those who are not registered in the E-Invoice portal, or represent all invoices issued to natural persons, non-taxable persons and non-E-Invoice users.

When are electronic invoices used?

You may voluntarily register in the E-Invoicing portal of the tax authority at any time. For mandatory registration, on the other hand, limits are published on an annual basis; it comes into force on the 7th month of the following year and the books of account must be kept electronically from the following financial year. For example, from a gross turnover of more than TRY 3 million in the 2023 financial year registration in the E-portal is mandatory by 1 July 2024 at the latest and the obligation to keep electronic books of account applies as of 1 January 2025.

As of 2024, taxable persons who are not obliged to issue E-Invoices (non-E-Invoice users) will have to issue invoices only in electronic form (E-archive invoices) for invoice amounts of TRY 6,900 or more (incl. VAT). Where the invoice amount is equal to or exceeds the said value, paper invoices are no longer permitted, even for non-E-Invoice users.

Do electronic invoices also apply to international business?

Cross-border transactions are processed electronically also in international business. Invoices for the export of goods must be issued as E-Invoices and for the export of services as e-archive invoices.

How is it processed technically?

An E-portal is required for issuing, transmitting and receiving E-Invoices. The portal can be implemented via private but licensed portal providers. In principle, annual fees are charged for the portal licence based on the number of E-documents. Incoming invoices are received and outgoing invoices are issued and transmitted via the portal; also all E-archive invoices can be issued and received via the portal. The user also has the option of checking and rejecting incoming invoices within a 7-day period. All E-Invoices and E-archive invoices can be downloaded in xml or pdf format. In addition, all electronic invoices are stored and archived online for the statutory limitation period of ten years.

Also the free-of-charge government portal can be used for electronic invoices. However, this portal is mainly used by taxable persons issuing only few invoices.

What else is needed?

The same mandatory information applies for an electronic invoice as for a paper invoice. Furthermore, the so-called E-business seal is required. The E-business seal is used to validate electronic invoices and other E-documents. It can be applied for from the tax authorities for a fee and is valid for three years.

Are there interfaces with the accounting system?

The E-portals also offer the option of creating an interface with the accounting system. The advantage of this is that E-invoices may be posted in the local ERP system at the time they are issued.