Turkey moves to enlarge e-bill & digitize logistics, agriculture and professional service invoicing

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Turkey moves to enlarge e-bill & digitize logistics, agriculture and professional service invoicing

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By: Ilke Altin, Channel Sales & Partnerhips Manager, eFinans

The Turkish Revenue Authority (“TRA”) has published on 25/08/2017 not one, but two draft communiqués on more digitization.

The first draft consists of bringing a change in the obligatory use of the Turkish e-bill project (“e-arsiv”). The current legislation obligates taxpayers that have made any amount of sales over e-commerce and surpasses the total annual gross turnover level of TRY 5M. As of 25/08/2017, 8261 taxpayers are issuing e-bills to receivers which fall outside the e-invoice obligation area. The e-bill users are also obligated to use e-invoice. Among other procedures designed to legislate e-commerce in general, the drafted Communiqué’s Article 5 suggests to amend the gross turnover level down to TRY1M . This is sure to encompass a larger obligatory population as it translates to any taxpayer making even TRY 0.01 e-commerce sale will have to issue all its invoices either on e-bill. Taking into account to growth in local e-commerce sales the Turkish public in general will be getting less and less paper invoices or bills. Peculiarly taxpayers with a turnover between TRY1M to 5M will not be jointly obligated to use e-invoicing, unlike those with a turnover of and above TRY5M.

The second and maybe the more important communiqué draft aims to digitize new fields; 1) The much awaited e-dispatch note, 2) farmer’s receipts and 3) professional service receipts (i.e. medical doctors, lawyers, architects, etc.), all with a target obligation date of 01/07/2018.

e-Dispatch Note

The system will be available very much like the TRA’s current methods of e-invoicing. Taxpayers will use the system either through licensed e-invoice providers or direct integration to TRA via systems on-premise or the proposed limited TRA webportal.

(eFinans is currently ready with its webservice guides and offers test and development environments for e-dispatch note. As all e-invoice users are obliged to received e-dispatch notes for any incoming parcels. It has started coaching its 130+ software partners to develop their connecting software to serve their clients’ needs on eFinans’s development environment. )

Farmer’s Receipt

The system is currently relatively unclear compared to e-Dispatch note. Proposedly it will run one-way much like the Turkish e-bill “e-arsiv” does. Obligated taxpayers will keep their copy of the farmer’s receipt digitized while continuing to issue in paper format to farmers.

Taxpayers will use the system either through licensed e-invoice providers or direct integration to TRA via systems on-premise or the proposed limited TRA webportal. Technically it is already known from experiences in e-arsiv that the direct integration is largely undesired by taxpayers due to high costs and relatively difficult IT audit requirements involved.

Professional Service Receipts

The system is currently relatively unclear compared to e-Dispatch note. Proposedly it will run one-way much like the Turkish e-bill “e-arsiv” does. Obligated taxpayers will keep their copy of the receipt digitized while continuing to issue in paper format to service receivers. However, unlike the farmer’s receipt, the receiver here will receive the paper receipt upon request. This signifies an operating procedure much akin to the current Turkish e-bill process.

Taxpayers will use the system either through licensed e-invoice providers or direct integration to TRA via systems on-premise or the proposed limited TRA webportal. Technically it is already known from experiences in e-arsiv that the direct integration is largely undesired by taxpayers due to high costs and relatively difficult IT audit requirements involved.