On October 19, 2019, the Turkish Revenue Administration (TRA) published a communique making the e-ledger application mandatory for e-invoice users, companies subject to an independent audit, and companies identified by the Presidency to have poor tax compliance.
The e-ledger application enables businesses to create the legally mandated general journals and ledgers and submit e-ledger summary reports (berats) to the administration, digitally. It reduces the costs of archiving books and saves time since this application replaces practices such as notarization. This increases voluntary transitions.
To be able to use the e-ledger application, companies must first complete a set of preliminary preparations set by the TRA:
- Real person taxpayers must have obtained a qualified electronic certificate issued by Electronic Signature Law or a financial seal pursuant to the communique. (General Communique no 397 of Tax Procedure Law)
- Legal person taxpayers must have obtained a financial seal pursuant to the communique
- Selected e-ledger software must be approved for compatibility.
The aim of e-ledger
E-ledger can be defined as an application designed to guarantee data accuracy and resources by ensuring that all journal data is created and signed electronically. The mandate also aims to reduce the loss or damage of stored data resulting in more efficient audits.
The e-ledger application offers:
- More reliable, digital environments to archive ledgers
- Shorter time to access accurate information during an audit
- Reduced costs and loss of time caused by notarization processes
- Increased compliance with taxation processes.
This aspect of the e-ledger application constitutes a legal basis for the economy and instills confidence in companies.
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