In the last two years, Türkiye has gradually lowered the gross turnover thresholds above which companies are obliged to use electronic invoicing. In addition, new industries have to use e-invoicing (in Turkish: e-fatura) in the future. These new requirements came into force in July 2022. We would like to give you the most important updates.
Our last blog article about the legal requirements in Türkiye, “Turkey: E-Invoicing/ E-Archive, E-Delivery, E-Ledger with SAP“, is from mid-2020. For more explanation about terms such as e-billing/e-invoicing, e-ledger & e-delivery, you can consult this blog.
According to a survey conducted in 2021 by the European Center for Digital Competitiveness, Türkiye ranks fifth in the G20 countries in terms of digitalisation. In the business sector, Turkey is increasingly moving towards digitalisation. Step by step, the commitment to e-invoicing is expanding in Türkiye. The gross turnover limits are getting lower every year. In addition, more and more small and medium-sized enterprises in Türkiye are using the e-invoicing system voluntarily. This is because they have also found that it is easier to send their documents to customers and the tax authorities with just one click.
The administrative procedures of private individuals will also be digitalised and made easier throughout the country.
Changed requirements for e-Factura and e-Invoicing in Türkiye - independent of industry
On 22 January 2022, the 31727th issue of the Turkish Official Gazette (Resmi Gazete) published under No. 535 that changes for legal requirements will come into force from 1 July 2022 or next year.
The following table shows the current changes.
For all businesses in Turkey that are taxable and have reached the gross-to-turnover threshold in 2020 or 2021 of TL (Turkish Lira) 4,000,000 are required to use e-invoicing from 01 July 2022 and the e-Ledger from 01 January 2023.
The gross turnover limit will be reduced for all companies for the year 2022 to TL 3,000,000. Businesses that reach this limit must use e-invoicing from 1 July 2023 and e-ledger from 1 January 2024.
This also applies to companies dealing with the production, import or supply of certain goods listed in List I and III of the Tax Law of Türkiye. The companies that have obtained a licence from the EPDK (Republic of Turkey Energy Market Regulatory Authority) for their activities and also manufacture or import the certain goods listed in the Tax Law must use the e-invoicing system from the 4th month of obtaining the licence.
Intermediaries and traders of fruit and vegetables are granted a 3-month transition period by the Turkish state to provide the technical requirements for the e-invoicing system.
Changed requirements for e-invoicing and e-ledger
The following tables show the changes for the respective industries.
Purchase, sale and leasing of real estate and motor vehicles
Businesses that trade in motor vehicles or real estate (buying, selling or leasing) are obliged to use e-invoicing from 1 July 2022 if they have generated a gross turnover of more than TL 1,000,000 in 2020 or 2021. And from 1 January 2023, they are additionally obliged to use e-ledger.
This gross turnover limit is halved for the year 2022. Companies operating in this industry that reach TL 500,000 in gross turnover this year are therefore obliged to use the e-invoice from July 2023 and the e-ledger from January 2024.
Online trade (for all industries)
Companies that operate online shops and have reached a gross turnover threshold of TL 1,000,000 in 2020 or 2021 will have to use the e-invoicing system as of July 2022 and from January 2023 e-Ledger.
The gross turnover limit in 2022 is TL 500,000. This means that next year, from July 2023, these companies will have to use the e-invoice, and from January 2024, the e-ledger.
Hotels and accommodation
Hotels and accommodations that have an operating licence from the Turkish Ministry of Culture & Tourism or municipalities are obliged to use the e-invoice from July 2022 without gross turnover limit and the e-ledger from January 2023.
Hotels and accommodations that receive their operating licence after the publication of the 31727th Turkish Official Gazette (Resmi Gazete), i.e. after 22.01.2022, must use the e-invoice by the beginning of the 4th month of operation. These companies will be offered a transitional period to create the technical conditions.
Iron and steel trade (manufacturer, importer, exporter)
All companies that are active in the iron or steel trade, regardless of whether they are a manufacturer, importer or exporter, are obliged to use the e-invoice and e-delivery from July 2022 without a gross turnover limit.
Requirement for e-Delivery (for all industries)
All companies, regardless of their industry, that have reached the gross turnover limit of TL 10,000,000 in 2021 must use e-Delivery from July 2022. This also applies to the turnover in 2022. If you have reached the gross turnover limit, you are obliged to use e-Delivery from July 2023.
How PIKON can help you
Do you have branches in Turkey? Are you planning new locations in Turkey?
We would be happy to answer your questions on this topic. Arrange a web meeting or write us a comment in the corresponding area at the end of the article.
With our Competence Center for Legal Requirements, we are a strategic partner who ensures that your SAP system and business processes meet different country-specific legal requirements all over the world in the long run. We have a team of experts that combine SAP expertise and in-depth knowledge of the end-to-end legal process and technical requirements of the different Turkish regulations for electronic submission of VAT-related information, being E-Invoicing, E-Delivery, E-Archive Invoicing and E-Ledger. Together with you, we analyse and define the best possible, future-proof SAP solution scenario for you and implement this in a minimum of time according to your pre-agreed budget and your specific wishes/ requirements.
We always keep an eye on new and changing legal requirements and inform our clients as soon as there is a need for action. Further changes to the regulations in Turkey are to be expected.