, ,

Why Companies Operating in Turkey Should Outsource Their Tax Compliance Processes

Erdinç Aysu
July 4, 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.

Take Action

Get in touch to find out how Sovos tax compliance software can help you meet your e-transformation and e-document requirements in Turkey.

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
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America ShipCompliant
August 15, 2022
Compliance and Tax Considerations for Cider Producers

The summer months can be ideal for enjoying a hard cider, but it’s always a good time for cider producers to brush up on three-tier compliance rules. Before expanding into new markets, you must be familiar with the specific rules of each state. In this blog, we will cover the major regulatory and tax rules […]

EMEA IPT
August 10, 2022
Meet the Expert – Hector Fernandez, Principal Compliance Tax Services Representative

Meet the Expert is our series of blogs where we share more about the team behind our innovative software and managed services. As a global organisation with indirect tax experts across all regions, our dedicated team are often the first to know about regulatory changes and developments in global tax regimes, to support you in your […]

North America ShipCompliant
August 9, 2022
2022 Direct-to-Consumer Wine Shipping Mid-Year Report

A lot has changed in the direct-to-consumer (DtC) wine shipping channel since the January release of our Direct-to-Consumer Wine Shipping Report—changes in volume and value that have the market resembling pre-pandemic patterns. Note: The proprietary data featured in this mid-year report is compiled from an algorithm measuring total DtC shipments based on millions of anonymous […]

E-Invoicing Compliance EMEA Italy
August 9, 2022
Italian Import Documents Become Electronic

The Italian Customs Authorities recently updated their national import system by applying the new European Union Customs Data Model (EUCDM). These new changes came into effect on 9 June 2022. According to the new procedure, the old model of paper import declarations has been abolished. The import declarations are now transmitted to the Italian Customs […]

E-Invoicing Compliance EMEA India
August 4, 2022
India: B2C Invoicing QR Code Requirement

In India, the e-invoicing system has been live since 2020. Taxpayers in the scope of e-invoicing mandate must issue their invoices relating to B2B and B2G transactions through the e-invoicing system, which is a form of continuous transaction controls (CTC). However, B2C invoices are not issued through the CTC system, which means that B2C invoices […]