Why Companies Operating in Turkey Should Outsource Their Tax Compliance Processes

This blog was last updated on July 6, 2021

In the digital age we live in, speed is essential. For companies wanting to compete on a global scale, acting fast is just as important as having the digital solutions to advance.

Taking into consideration the effect of digitalization on globalization, businesses are outsourcing processes to specialists to keep pace and focusing on their core business activities to drive success.

The need for outsourcing

Companies wanting to create a difference with their primary products and services are outsourcing their business processes instead of centralising them to remain focused on their core business objectives.

Today, digitization and speed, the key elements of success for companies, impact business processes as well. Being quick to adapt can be difficult for companies that have not integrated digitization into their operations. Moreover, trying to specialise in multiple areas can cause inefficiency.

Although specialising in business processes that support business operations can have a positive effect on sales figures, spending office hours and resources on activities outside of core business objectives could result in potential revenue loss and the need for additional staff.

The benefits of working with service providers for digital tax solutions

As a result of the digitization of tax, companies are turning to service providers to outsource expertise and specialist services rather than spending budget and time trying to specialise in e-transformation internally.

Outsourcing e-transformation solutions is the most time-efficient and cost saving way, liberating companies from requiring the internal expertise of finance and IT departments and high technological infrastructural investments.

The most important contribution of service providers to companies in the e-transformation process and e-document applications is their expertise. The expertise of service providers lets companies implement and manage the process with greater flexibility, speed, and cost effectiveness. In processes related to e-documents, service providers eliminate risks by offering important features in terms of security.

For further information, please look at our blog How Tax Technology is Improving Company Efficiency.

The number of e-document users has increased

Companies outside of the mandated scope issued by TRA have begun the process of e-transformation voluntarily, taking advantage of the benefits with the help of service providers. Besides the advantages of working with a service provider, the benefits of e-transformation include time, cost, and efficiency savings in business operations.

The number of taxpayers benefiting from the e-invoice application increased by 77 percent compared to the previous year to 332,000 and the number of e-invoices issued increased by 52 percent to 366.6 million. The total amount of the e-invoices in question doubled last year, covering the COVID-19 period (106 percent increase), reaching 9.9 trillion Turkish Liras.

The number of taxpayers who applied to use the e-Ledger application and were allowed to use the e-Ledger application as of the end of 2020, from the day it started, was 203,000. In addition, the number of users registered to the e-Archive application reached 321,000 as of last year.