The scope of e-invoice application is expanding

As of July 1, new taxpayers will be included in the scope of the digital transformation process initiated by the Revenue Administration for the electronic preparation of numerous documents such as invoices, ledgers and delivery notes issued on paper. According to AA, the presidency had decided to switch to e-document applications for taxpayer groups and sectors in 2020 and beyond with the regulation it made in 2019. Sectors and taxpayer groups are switching to these applications according to their gross sales revenues. In this context, the obligation to use e-documents is being implemented for numerous documents such as invoices, archive invoices, delivery notes, producer receipts and ledgers issued on paper. Many sectors such as businesses licensed by the Energy Market Regulatory Authority (EPDK), those engaged in vegetable and fruit trade as brokers and merchants, intermediary service providers, those publishing advertisements on the internet and internet advertising service intermediaries, passenger transportation companies, beverage manufacturers and cinema operators were included in the scope of these applications. With the latest regulation of the Revenue Administration, new taxpayer groups will also be allowed to switch to e-invoice. Accordingly, taxpayers whose gross sales revenue is 3 million Turkish Lira and above for 2022 will be obliged to switch to e-invoice without distinction of sector as of July 1. Of the taxpayers who sell goods or services through their own websites or internet sales platforms or in any electronic environment, those who have a gross sales revenue (or gross business revenue with their sales) of 500 thousand Turkish Lira and above for 2022 will also be included in this obligation. Of the taxpayers who carry out real estate or motor vehicle, construction, manufacturing, purchase, sale or rental transactions and who act as intermediaries in these transactions, those who have a gross sales revenue (or gross business revenue with their sales) of 500 thousand Turkish Lira and above for 2022 will also be required to switch to e-invoice or e-archive invoice after July 1. The second phase will be implemented in 2024 These taxpayers will also switch to the e-ledger application as of January 1, 2024. In case the e-archive invoice is not issued, amounts different from the actual amount are included, the e-archive invoice which should be issued as an electronic document is issued as paper (except for mandatory cases) and is deemed not to have been issued at all, a special irregularity penalty of 10 percent of the amount or the difference in amount that should be written on these documents will be imposed, not less than 2,200 liras for each document for 2023. The total penalty to be imposed for each type of document in a calendar year will be 1 million 100 thousand liras. Taxpayers who are registered to the e-invoice application and whose turnover is 10 million liras and above in 2022 will also be required to switch to the e-delivery note application as of July 1, regardless of sector. On the other hand, the e-invoice application includes the creation, transmission, electronic storage, presentation and reporting of invoices, which allows messages to be transferred between parties in a secure manner in accordance with the determined standards.