What is E-Invoice and How to Switch?

E Invoice Application

What is an e-invoice? It is an application that facilitates the work of taxpayers who make a large number of sales, companies that make e-commerce over the internet and in fact all commercial companies, large and small. It is a secure invoice application that saves time for the company and its employees.

Let’s briefly discuss how to switch to electronic invoice and what advantages await you when you switch to the e-invoice system.

Who can benefit from e-invoice?

Even businesses with annual sales, turnover or profit of 5 TL can switch to the e-invoice system. The Ministry of Finance Revenue Administration in Turkey is the only authorized institution that determines the standards and rules of E-Invoice.

According to GİB, there is no lower limit requirement for businesses and companies to use the E-invoice system, but if you have sales of 10 million TL and above per year, the E-Invoice system is mandatory. In addition, if you have an E-commerce volume of 5 Million TL and more per year, you have to switch to E-invoice.

Whether you are a sole proprietorship, Limited Company or Joint Stock Company, you can use the E invoice system. As I said, there is no lower limit.

What are the advantages of e-invoicing?

• The most curious answer to the question of what e-invoice is will undoubtedly be its biggest advantage. It is easy to archive and follow-up can be done quickly. It will provide a great advantage both on the company and accounting side. These advantages will return to you as time and low cost.
  
• Especially e-commerce, companies that sell through the b2b channel and online shopping systems(Hepsiburada, Gittigidiyor, N11, Amazon, etc.) can work integrated with online shopping systems, so invoicing can be done much easier than printed invoices.
  
• In other words, when you sell on Gittigidiyor, you do not have to send an invoice to the customer by cargo. The code-link information of the Online E-invoice issued for the product sold can be sent to the customer’s email account or mobile phone via sms.
  
• Since it is an environmentally friendly system, you protect nature. In fact, this is perhaps the most important advantage. According to 2017 data, 300 thousand trees are saved from destruction thanks to the E-invoice system.
  
• In addition, the fee you will pay to the printing house to print the invoice stub will remain in your safe.
  
• Compatible with integrated payment systems such as e-pos.

Should I Switch to E-Invoice System Immediately?

There is actually not much to switch to the e-invoice system. Your freelance accountant you are working with will help you with this. However, let’s talk about how to switch to e-invoice for preliminary information. What you need to do will vary according to your company’s business volume and capital.

1. If you are a large company and you are using accounting-pre-accounting software written specifically for your company (not a package program, not logo, eta, micro, etc.), the software company will integrate it into your accounting software by making the necessary integration coding.
   
2. You have a medium-sized business and Logo, Eta, Micro etc. If you are using a 3rd party accounting software, you can purchase the E-invoice modules of these programs and have them included in the package program you are currently using.
   
3. Finally, if you are a small-scale company or if you do not use any accounting program, the accountant you have contracted is doing this work for you. At this stage, you can use the Free Efatura module of the Revenue Administration. However, let us remind you that in this module, your electronic invoice will be produced, declared to the Ministry of Finance, but archiving will not be done.

How to Switch to E-Invoice?

Where to Apply for E-Invoice?

In order to switch to e-invoice, you must first obtaina “Financial Seal” through your contracted Accountant & Financial Advisor or by applying to the Ministry of Finance yourself. The Financial Seal is a module containing encrypted codes developed by Tübitak and will be delivered to you in usb memory. The Fiscal Seal in the usb memory varies between 2490 TL – 3500 TL according to your annual invoice volume. If I am not mistaken, it will be valid for 3 years.

After having a Financial Seal, you can quickly move your invoices online by contracting with an intermediary organization that provides E-invoice & E-archive service. Let’s imagine that you issue an average of 1000 invoices per month;

• Annual average cost of 12 thousand printed invoices = 35000TL
• E-invoice + E-archive service with 12 thousand invoice cost 6500TL (service fee) + 2500TL (Financial seal fee) = average. 10.000TL

How to Integrate E Invoice?

You can provide this process with the e-invoice modules of the 3rd party accounting programs you are using or with Integrator companies that provide E-invoice Integration services.

At this stage, if you are going to use the electronic archiving option, you will not be able to include your old invoices in this system in any way. In fact, if you have any remaining printed blank invoice stubs, you must submit them to the Ministry of Finance through your accountant.

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E-invoice Integration is the most recommended E-invoice solution for medium-sized companies. Because the intermediary company that provides integration is obliged to keep all your invoices for a minimum of 10 years. This is secured by the Regulation of the Ministry of Finance.

Frequently Asked Questions (Q&A) about E-Invoice

Question: Do I have to pay for the installation after purchasing the Efatura service?
Answer: Almost all of the intermediary companies that integrate do not charge an installation fee.

Question: Can a return invoice or proforma (preliminary) invoice be issued in the e-invoice system?
Answer: All the actions you can do in the printed invoice system, including return invoice and proforma invoice, can also be done in the E-invoice module. You can even create a delivery note.

Question: Can I issue an invoice for export without VAT?
Answer: Of course, you can export in the E-invoice system as in the printed invoice.

Question: Can the customer or company I sent the e-invoice to object?
Answer: There is a right of objection for inadvertent errors in the e-invoice, but if no objection is made within 7 days, the invoice becomes final and the appeal is closed.

Question: Can I save my printed invoices in E archive without Efatura integration?
Answer: No. You cannot do this operation. Because E Archive can only be done for electronic invoices.

Question: Is e-invoice integration compatible with B2b systems (such as Hepsiburada, Gittigidiyor, Amazon)?
Answer: Most of the Efatura integration systems sold in the market have the infrastructure that can work in harmony with online shopping sites.

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Question: Can exporter companies use the E-invoice system?
Answer: E-invoice is mandatory for exporting companies. Export with printed invoice is not allowed. However, physical invoice is allowed for Micro Export. However, if I were you, I would also use E-invoice integration for the Micro Export channel.

Question: When we issue an invoice to another company in the E-invoice system, does it matter which invoice type the other party uses?
Answer: The Integrator company handles this process for you. When you enter the TR Identity Number or Tax Number for the invoice, the system can detect whether the other party uses E-invoice or printed invoice.

If you have questions about e-invoice, you can ask them in the comments section or by email.