Turkey: How Tax Technology is Improving Company Efficiency

Digital transformation will continue to be a business priority for years to come. Efficiency is still one of the primary issues that companies want to improve and the digitization of many business processes is helping to increase efficiency, reduce errors and ensure compliance. Technology is helping to transform departments, including tax.

The benefits of tax technology for companies

Productivity is always a key focus for business. Tax technologies enable companies to improve efficiency in three essential areas:

• Time-saving: Many tax filing and submission tasks can be completed faster with the help of tax technologies, saving time and resources.
• Cost-saving: The efficiency benefits of tax technologies also provide cost savings. The increase in efficiency frees up tax teams to focus on tasks that generate profit for businesses.
• Reduces errors: Correcting errors takes time and can result in fines and reputational damage. Tax technologies help to eliminate unnecessary and costly errors that might have occurred with manual processing, reducing time spent on resubmitting or correcting submissions.

How e-documents improve company efficiency

There has been an increase in the use of e-documents in Turkey following the General Communiqué issued by the Turkish Revenue Administration (TRA) in 2019. This has expanded the scope of e-transformation applications and as well as the mandatory requirements, many companies have voluntarily made the switch to e-documents.

The different types of e-documents all provide their own efficiency benefits.

• E-invoice
  • E-invoices are quickly issued and archived digitally, saving companies time and physical storage costs.
  • Since e-invoices don’t have a physical delivery process, documents are received immediately and cannot be lost in transit, preventing delays.
  • Accelerates collection tracking and management.
  • Eliminates the costs associated with paper invoice printing.
• E-arşiv invoice
  • Invoices are issued quickly.
  • Printing and shipping costs are reduced.
  • Reporting is easier and detailed reports are prepared quicker.
  • Accounting processes are faster freeing up valuable resources.
• E-delivery note
  • Reduces paper and filing costs.
  • Waybills can be tracked and managed.
  • Provides quick reconciliation.
  • Eliminates costs for e-delivery note invoice losses or resubmissions.
  • Documents are stored electronically for years, eliminating storage and filing costs.
• E-ledger
  • Time taken to collect data for audits is reduced.
  • Reduces cost and time lost resulting from notarisation processes.
  • Ensures compliance with tax processes.
• Other e-documents
  In addition to the e-documents included within the mandate such as e-self-employed receipt and e-producer receipt, there are many other e-documents that help improve efficieny including e-note of expense, e-ticket, e-insurance commission expense note, e-insurance policy, e-currency exchange note and e-receipts.

Tax is a necessary but time consuming business process but tax technologies are making the process more time, cost and resource efficient for companies.

Making the change from existing paper based processes to the new e-document applications can feel daunting but we have over two decades of experience supporting companies operating in Turkey. Our solutions enable companies to transform and manage all financial scenarios in-line with the TRA’s requirements.