Turkey’s Digital Tax Transformation: What is E-Arşiv Invoice?

Erdinç Aysu
November 25, 2020

Companies have begun to transfer financial processes to the digital environment as a result of technological developments in recent years. Business efficiency has increased through the financial processes regulated via e-transformation applications. The e-transformation system in Turkey covers applications such as e-invoice, e-ledger, e-arşiv, e-ticket, e-reconciliation, and e-delivery note.

Mandate scope of e-arşiv invoice

According to the latest communique, taxpayers with a gross sales revenue of TRY 5 million or above in fiscal years 2018 or 2019 completed their mandatory transition to the e-invoice and e-arşiv invoices applications as of 1 July 2020.

Taxpayers who meet these requirements in 2020 or later, should switch to the e-invoice system at the beginning of the seventh month of the following accounting year.

Differences between e-arşiv invoice and e-invoice

The most important features differentiating e-invoice from e-arşiv invoice are as follows:

  • E-invoice is exchanged between (sent, received and replied to) registered e-invoice users. While e-arşiv invoice is sent to taxpayers not registered to e-invoice (an end user or a company) by the supplier who is registered to e-invoice
  • UBL-TR format is mandatory in the e-invoice application since the invoice is sent to the Turkish Revenue Administration (TRA) for approval. However, the format is not mandatory in the e-arşiv invoice application because the invoice isn’t sent to the TRA; using UBL-TR is optional
  • There is no further reporting in the e-invoice system as invoices are forwarded to the receiver via the TRA. In the e-arşiv invoice system, it’s mandatory to report to the TRA until 24:00 the following day

    • Benefits of e-arşiv invoice

    Now more prominent through Turkey’s digital transformation, e-arşiv invoice has other benefits while reducing the issue of paper invoices, as well as cutting printing and shipping costs to a large extent:

    • Shipping and approval processes accelerate since invoices are sent online
    • Prevents losses during the invoice shipping
    • Easy and fast access to previous invoices
    • More secure since invoices are sent and stored digitally

    The e-arşiv invoice system enables firms to keep up with the digital age through a policy in line with international standards.

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

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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.
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