Digitalisation in Taxation

Recently, Turkish tax authorities has accelerated the transformation of taxation tools and documents into electronic format.

e-Declaration

Electronic transformation in tax has accelerated with moving from paper based declarations to electronic format which are now submitted through Internet Tax Office. Most of the tax declarations used in Turkey have converted to electronic format with this development. Today, tax offices which have switched to full automation accepts most tax declarations electronically. Only a few (rarely used) declarations remain in paper format.

VAT Declaration of Digital Service Providers (VAT Declaration no.3) will also be in the format of e-Declaration and be submitted through Internet Tax Office online.

e-Invoicing

e-Invoicing system in Turkey works as a closed network of registered taxpayers that issue e-Invoice in XML (UBL-TR) format to each other through the network of Turkish Revenue Administration.

Additionally, customs authority and Social Security Administration (SSA) are also joined in the e-Invoicing system. Therefore, invoices for export purpose and invoices issued to institutions of SSA have to be issued through e-Invoicing system as well. Invoices issued to others (non e-Invoicing registered parties) remain in paper format unless the issuer joins to e-Archive Invoicing system together with e-Invoicing.

Companies that has a sales revenue of 10m TRY or above are obliged to join e-Invoicing system until the end of the year following the year in which this threshold has reached.

As of today, around 75.000 entities in Turkey are registered to e-Invoicing system.

e-Archive Invoicing

Without e-Archive invoicing, entities that have joined e-Invoicing system issue e-Invoice to other e-Invoicing registered parties but paper invoice to non-registered parties. But, e-Archive invoicing allows these entities to issue invoice electronically to non e-Invoice registered ones and real persons. These invoices could be delivered through all kind of electronic means to their recipients (e-mail, sms etc).

All e-Archive invoices issued in a month shall be reported to Turkish Revenue Administration until the 15th of the following month.

Companies that conduct internet sales and have a sales revenue of 5m TRY or more are obliged to join e-Archive invoicing system which also requires joining e-Invoicing system as a prerequisite.

As of today, around 13.000 taxpayers in Turkey are registered to e-Archive Invoicing system.

e-Bookkeeping (e-Ledger)

e-Bookkeeping system allows taxpayers to keep local accounting books (journal and general ledgers) in electronic format in XML (XBRL). Companies need to use an authorised software that enable them to generate each month’s journal and general ledgers in XBRL.

e-Ledgers are only created and archived encrypted but a summary file (that proves creation and encryption of a month’s ledger) is uploaded to Turkish Revenue Administration system until the end of following 3 months (an additional month is given in year ends).

e-Record Keeping (SAF-T)

Companies conduct business in industries that fall in the scope of Special Consumption Tax (excise tax) are supposed to keep all their purchase, sales, import, export and production records in detail electronically to have a standardised audit file for authority when needed.

Today, lists of the excise legislation that cover petroleum and tobacco products in are in the scope but authority plans to include lists of alcoholic/non-alcoholic beverages and automotive industry to the scope as well.

New Generation Cash Register Devices (e-CRD)

Retail locations in Turkey are supposed to use Cash Register Devices (fiscal device) in their stores. Turkish Revenue Administration introduced a new version of CRDs which are linked to credit card payment terminals (EFT) and reports to TRA servers online.

How we may assist you ?

We have special expertise on all e-Transformation subjects in the tax environment and can help you on any of the above subjects in this area when needed.

Please contact us for all your queries.