Turkey: Electronic transformation in Turkey

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Turkey: Electronic transformation in Turkey

Costa-Guilherme-100

Guilherme Costa

The Turkish tax authorities have demonstrated over the last few years that there is no time to lose in the implementation of their ambitious electronic transformation plan.

Though e-invoicing and e-bookkeeping have been made available to all companies in Turkey since 2010 and 2011, respectively, the real push for adoption only came with the publication of communiqué no 421 in 2012, which made these applications mandatory for around 20,000 companies. Following the recent extension of its scope of obligation, application of e-invoicing is expected to gain traction with its use estimated to increase to 50,000 by the end of the year, and to reach 100,000 in 2016.

Government mandate remains the main propeller in the shift from paper to electronic reporting formats and companies have continued to rush their finance and IT teams to adjust their processes as much as they can to uncertain rules amid never-ending new applications and very tight deadlines.

Despite the government's enthusiasm, exchange of invoices in electronic format in Turkey is quite peculiar. There are two distinct systems available: In e-invoicing, the authorities act as a mandatory hub and have access to all e-invoices in real time. However, as this system is only applicable whenever both parties are registered in e-Invoicing, companies are still expected to issue invoices in official serialised, pre-printed paper to most of its customers.

It is because of this that a new application, named 'e-archive' by the authorities, was recently made available for companies already using e-invoicing. This allows companies to issue invoices in electronic format to all their other customers directly (for example, by e-mail), though the authorities require a monthly report with at least a dozen fields for each invoice. There are 150 companies now authorised to issue e-archive invoices, but this number is expected to grow considerably by the end of the year as companies conducting online sales are mandated to join this application.

'Green' initiative?

There is no need to sugar-coat matters and pretend that the main goal is to save paper. The tax authorities do aim to save trees, but they are also particularly interested in how easy and convenient it will become to remotely monitor and audit companies' tax data.

This is a double-edged sword for companies, as the several mandatory fields in each e-invoice create a huge potential in terms of process automation, data synchronisation and data analysis, but also significant risks associated with insufficient data quality and inaccuracies between tax declarative obligations.

While releasing new applications in quick succession, such as e-notification, e-waybill and new-generation cash register devices, all of which will further disrupt existing taxpayer processes, the authorities are assembling an array of tools to complete their e-audit plans.

In this regard, companies in Turkey can no longer trust market practices crystallised over several years of manual paper-based processes. It is of the utmost importance to engage in a proactive approach to integrate all these new applications in a manner that not only satisfies tax compliance requirements, but also allows for operational efficiency and IT simplicity.

Guilherme Costa (guilherme.e.costa@tr.pwc.com)
PwC Turkey

Tel: + 90 212 326 69 36

Website: www.pwc.com.tr

more across site & shared bottom lb ros

More from across our site

The arrival of a seven-strong team from Baker McKenzie will boost WTS Germany’s transfer pricing capabilities and help it become ‘a European champion’, the firm’s CEO said
Germany has forgotten to think about digital reporting requirements, a WTS partner claimed at ITR’s Indirect Tax Forum 2025
E-invoicing is currently characterised by dynamism, with fragmentation acting as a key catalyst for increasing interoperability, says Aida Cavalera of the International Observatory on eInvoicing
Pillar two and the US tax system ‘could work in harmony’, Scott Levine tells ITR in an exclusive interview to mark his arrival at Baker McKenzie
Peter White, who has a tax debt of A$2 million, has been banned for five years from seeking registration with Australia’s Tax Practitioners Board (TPB)
Wopke Hoekstra’s comments followed US measures aimed against ‘unfair foreign taxes’; in other news, Grant Thornton and Holland & Knight made key tax partner hires
An Administrative Review Tribunal ruling last month in Australia v Alcoa represents a 'concerning trend' for the tax authority, one expert tells ITR
A recent decision underlines that Indian courts are more willing to look beyond just legal compliance and examine whether foreign investment structures have real business substance
Following his Liberal Party’s election victory, one source expects Mark Carney to follow the international consensus on pillar two, as experts assess the new administration
A German economics professor was reportedly ‘irritated’ by how the Finnish ministry of finance used his data
Gift this article