e-Invoice and e-Archive: Efficient and Secure Invoicing for Businesses

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What are e-Invoice and e-Archive?

With advancing technology, digital transformation in the business world has gained momentum, and electronic invoices (e-Invoice) have started to replace paper invoices. An e-Invoice is a type of invoice that is created, sent, and stored electronically in compliance with the standards set by the Revenue Administration (GİB).

The e-Invoice system enables invoices to be created, sent, and archived electronically. It has the same legal validity as traditional paper invoices. The e-Invoice application, which came into effect on September 1, 2013, has been made mandatory for certain sectors, and it is planned to be extended to all businesses in the future.

e-Archive is an application that involves the creation, storage, presentation, and reporting of invoices electronically in accordance with the standards set by the Revenue Administration (GİB). e-Archive invoices are created electronically and sent to the recipient through the e-Archive application. This reduces the use of paper invoices and digitizes the invoicing process.

Advantages of e-Invoice and e-Archive

With the rapid acceleration of digital transformation today, various technological solutions have been developed to make financial processes more efficient and secure for businesses. One of these solutions is the e-Invoice system. Let’s take a detailed look at the benefits of using e-Invoice and e-Archive for businesses.

Cost Savings

Traditional invoicing processes require additional expenses, including paper usage, printing, physical archiving costs, postage, and shipping fees. With the e-Invoice system: Paper, ink, and printing costs are completely eliminated. The need for storage space is reduced since invoices do not need to be physically stored. Shipping and courier expenses are eliminated, as invoices are instantly transmitted electronically. These savings provide significant cost advantages, especially for businesses with a high volume of invoices.

Environmentally Friendly Solution

The preparation of traditional invoices consumes large amounts of paper, leading to deforestation and depletion of natural resources.Paper consumption is minimized, preventing tree cutting. The carbon footprint from printing processes is reduced.Eliminating shipping and physical delivery reduces fuel consumption and environmental pollution. With these aspects, e-Invoice is an environmentally friendly application that supports sustainability goals.

Fast and Secure Transaction Process

The preparation, delivery, and processing of physical invoices are time-consuming and involve risks such as loss or incorrect addressing. Invoices are instantly generated electronically and quickly delivered to the recipient. Errors arising from manual processes are minimized.Since invoices are encrypted and regulated within official guidelines, risks such as fraud and data loss are minimized. This allows businesses to offer a more reliable and efficient invoicing experience to their customers and suppliers.

Easy Archiving and Quick Access

Storing traditional paper invoices can create a major archiving problem over time. Documents lost among folders and cabinets can complicate business processes. Since invoices are stored electronically, there is no need for physical storage. Desired invoices can be found in seconds using specific criteria.Digital archiving in compliance with legal regulations facilitates audit processes for businesses. This saves significant time and labor costs.

Convenience and Integration in Accounting Processes

The speed and accuracy of accounting processes are crucial for businesses. The e-Invoice system integrates seamlessly with accounting software, providing great convenience. Automatic data entry prevents manual errors.Invoice data is processed instantly, accelerating accounting workflows. Reporting and analysis can be conducted more systematically. This integration helps businesses create a more efficient working environment in their accounting departments.

Compliance with Tax Regulations and Audit Facilitation

The e-Invoice system operates in accordance with the standards set by the Revenue Administration (GİB). This provides businesses with various tax advantages and facilitates compliance with legal requirements. Since invoices are approved by GİB, they must comply with tax regulations.Invoices can be quickly accessed and reviewed during audits.Helps prevent tax evasion and reduces unregistered transactions.

Transition Process to e-Invoice

Businesses that wish to use or are required to switch to E-Invoice must follow these steps:

Obtain a Financial Seal or e-Signature: To issue an E-Invoice, a financial seal or e-signature must be obtained from the Revenue Administration.

GİB Portal or Integration Method: Businesses registered in the E-Invoice system can send and receive E-Invoices through the GİB Portal or via private integrators.

Application Process: Businesses apply through the official GİB website and complete the necessary approvals to join the system. For more details, you can visit: https://sovos.com/tr/.

Mandatory Transition to e-Archive

The obligation to transition to the e-Archive system varies depending on company revenue and sector. According to the communiqué issued by GİB:

Companies with a revenue of 3 million TL or more in 2022 must switch to the e-Invoice and e-Archive system by July 1, 2024.

These companies must also adopt the e-Ledger system by January 1, 2025.

In 2025, invoices exceeding 9,900 TL must be issued as e-Archive invoices, regardless of whether the recipient is a taxpayer.

Differences Between e-Archive and e-Invoice

e-Archive and e-Invoice are two frequently confused types of electronic documents. The key differences are:

e-Invoice: Can only be sent to customers who are E-Invoice users.

e-Archive Invoice: Sent to customers who do not use the e-Invoice system. Small and medium-sized enterprises can use both e-Invoice and e-Archive Invoice together to send invoices electronically to all customers.

e-Invoice Application Methods

Taxpayers who want to transition to the e-Invoice system can complete their applications using one of the following methods:

GİB Portal Method

This is a free method offered by the Revenue Administration, suitable for small businesses. The application process includes:

• Obtain a financial seal or e-signature

• Register on the GİB e-Invoice Portal

• Fill out the application form

• Upload the necessary documents

Private Integrator Method

In this method, businesses switch to the e-Invoice system through private integrators authorized by GİB. Advantages of using a private integrator include:

• Technical support and ease of use

• Invoice archiving services

• Integration support Businesses choosing this method must select an integrator and follow their specific application process.

Required Documents for e-Invoice Application

• e-Invoice Application Form and Commitment Letter issued by the Revenue Administration.

• Electronic Financial Seal Certificate Commitment Letter from the seal owner.

• Notarized Trade Registry Gazette including the company’s incorporation details.

• Notarized Signature Circular of the company representative.

• BIS Report (Declared Information System Report) if using a private integrator.

Conclusion

e-Invoice and e-Archive systems play a crucial role in businesses' digital transformation. These electronic systems reduce costs while improving transaction speed and ensuring compliance with legal regulations. Additionally, they offer an eco-friendly approach by minimizing paper usage.

With increasing mandates from GİB, more businesses are transitioning to the e-Invoice and e-Archive system each year. This transition enhances the efficiency of accounting and auditing processes while simplifying the issuance, transmission, and storage of invoices in digital format. In the future, all businesses are expected to adopt the e-Invoice system, making early adaptation a significant advantage.