Cancellation and Refund Policies for E-Invoice and E-Arşiv Invoice

Erdinç Aysu
July 15, 2020

Taxpayers with annual gross sales of TRY 5 million and above are obliged to use e-invoice or e-arşiv invoice from 1 July 2020. Although the e-invoice has the same qualities as a paper invoice, there are occasions where it should be treated differently such as for cancellations and refunds.

What is a refund invoice?

A refund invoice is issued by the buyer when they want to return all or some of the received goods back to the seller. 

There are two B2B e-invoice scenarios:  commercial and basic. For the e-invoices created in commercial scenarios, the receiver can respond to the e-invoice and accept or reject it in seven days. In basic e-invoice scenarios, the receiver doesn’t have the option to respond. The sender ultimately decides although usually both parties agree and select the scenario.

E-arşiv invoice is sent directly to its recipient and doesn’t fall into the basic or commercial scenarios.

In electronic invoicing, refund invoices or cancellations fall under three headings:

  • Refunds and cancellations of basic e-invoices
  • Refunds and cancellations of commercial e-invoices
  • Cancellations of e-arşiv invoices

Refunds and cancellations of basic e-invoices

Basic e-invoice is when the recipient receives the invoice from the sender through the Turkish Revenue Administration (TRA) platform. The recipient has no option to reply to reject or accept the received basic e-invoice through the application.

When the sender issues the invoice as a basic invoice, it’s marked as accepted/approved without the recipient’s approval. The recipient must issue a refund invoice if he/she wants to return the invoice.

If the recipient doesn’t want to record this process in their accounting records, he/she can reject the e-invoice via Registered Electronic Mail (REM) or notary. Another cancellation option is through the TRA portal. E-invoices can be cancelled with both parties’ approval by entering the TRA portal and using the financial seal.

Refunds and cancellations of commercial e-invoices

For e-invoices created in commercial scenarios, the recipient has an acceptance or rejection option. The sender looks for a response from the recipient through the system within seven days. If the recipient sends a rejection response within the prescribed time, a refund invoice isn’t needed. If the prescribed time passes, the reply option in the system would close and the receiver would have to issue a refund invoice.

Cancellation of e-arşiv invoices

E-arşiv invoice is an electronic invoice sent to individual customers or companies not registered in the e-invoice system. Each issued e-arşiv invoice is sent to its recipient as a hard copy or directly via electronic means like e-mail. A prescribed format daily report is sent to the TRA providing e-arşiv invoice data from the day.

The sender can cancel the e-arşiv invoice sent to its recipient and inform the receiver. Details of any cancelled e-arşiv invoices should be indicated in the daily report.

Take Action

Sovos has more than a decade of experience keeping clients up to date with e-invoicing mandates all over the world.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Erdinç Aysu

Located in Turkey, Erdinç is the lead solution principal on everything relating to the Turkish Mandate. Erdinç supports business partners and customers in terms of technical and legal aspects and optimizes their business processes, whereas UR-GE marketing and customer compliance within Sovos. Erdinç has more than eight years of experience in software technologies and completed his Master’s degree in Computer Engineering at Işık University. Erdinç also supports e-transformation on every platform as a speaker in webinars and events.
Share This Post

LATAM VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

Tax Compliance
August 7, 2020
GAO Urges IRS to Overhaul 1099 Reporting for the Gig

A couple of weeks ago, the Government Accountability Office (GAO) released a report to the Senate Finance Committee describing the issues the IRS faces in enforcing income tax compliance for gig economy workers. The report highlighted long-standing issues the government has been grappling with in receiving tax information necessary to enforce compliance along with specific […]

EMEA VAT & Fiscal Reporting
August 4, 2020
New VAT Rules for Online Marketplaces and Imports of Goods into the UK

The United Kingdom’s HMRC has issued new guidance on the VAT treatment of cross-border sales of goods and online marketplaces beginning 1 January 2021, following the end of the transition period. Cross-Border Sales under £135 New rules will apply when a business sells goods for £135 or less to a UK customer and the goods […]

EMEA VAT & Fiscal Reporting
August 3, 2020
New EU Tax Package: VAT Priorities

On 15 July 2020, the European Commission (EC) adopted a new Tax Package, intended to increase tax compliance while reducing administrative burden on businesses. The Tax Package contains a number of proposals related to VAT, of which three in particular stand out: A single EU VAT registration for taxpayers; Modernized VAT reporting obligations; and Facilitated […]

IPT
August 3, 2020
Should Insurers Receive an IPT Holiday From Their Governments?

It’s been a tough year for businesses. Whilst many have accepted that 2020 is likely to be a year to forget, unfortunately tax still needs filing and paying. Tax authorities have been understanding – nobody could have foreseen this – and there has been a concerted effort to provide SMEs with tax relief and postponements […]

Asia Pacific E-Invoicing Compliance EMEA India
July 31, 2020
India: Last-Minute Changes to the Proposed E-Invoicing System

The October deadline is fast approaching for the Indian CTC invoicing mandate, but it remains a moving target. In a swift move that was published just two months prior to go-live, authorities have now changed the scope of who is affected by the reform, as well as updated the JSON format. Why the change? The […]