e-Invoice and e-Archive Invoice Cancellation Processes

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Concepts of e-Invoice and e-Archive

e-Invoice and e-Archive Invoice systems, which are among the most important innovations brought to the business world by digitalization, provide ease to both businesses and individual taxpayers. However, as with any technological system, errors may occasionally occur in these digital invoice applications. Situations such as entering the wrong tax number, missing or incorrect buyer information, or issuing an invoice with the wrong amount may lead to the cancellation of e-invoices. One of the most common questions users have in such cases is how the e-Invoice and e-Archive Invoice cancellation process works. These cancellation processes, which vary depending on the type of invoice, are carried out within specific legal timeframes and methods.

How is e-Invoice Cancelled?

e-Invoice is an electronic document system managed and supervised by the Revenue Administration (GİB). However, the cancellation of a wrongly issued e-invoice is not an operation that can be carried out solely by the sender. For an invoice to be canceled, the buyer must first reject it. After the buyer's rejection, the invoice can be canceled via the GİB’s e-Invoice Cancellation Portal. Basic and commercial e-invoices must be canceled within 8 days from the issuance date. After this period, direct cancellation of the invoice in the e-Invoice system is not possible.

Basic e-Invoice Cancellation

What is a Basic e-Invoice?

A Basic e-Invoice is a type of e-invoice directly sent by the sender to the recipient, where the recipient can only object if a technical error is detected. In this system, the recipient does not have the right to reject the invoice for commercial reasons. Therefore, the basic e-invoices sent are generally considered accepted by the recipient.

Basic e-Invoice Cancellation Process:

Login: The sender taxpayer logs into the e-Invoice Cancellation Portal provided by the Revenue Administration (GİB) with their cancellation user information.

Initiating the Cancellation Request: The "Create Invoice Cancellation Request" button on the homepage is selected to begin the process.

Using an Electronic Signature (e-Signature): If an e-signature tool is defined on the computer, the system will automatically recognize it. If the e-signature driver or software is not installed, the user will be guided to install the necessary software.

Entering Invoice Information: The details of the basic e-invoice to be canceled (invoice number, date, buyer information, etc.) are entered accurately and completely into the form.

Sending and Completing the Request: After verifying the information, the cancellation request is approved with the electronic signature and sent. The system provides a notification that the cancellation process has been successfully completed.

Commercial e-Invoice Cancellation

What is a Commercial e-Invoice?

A Commercial e-Invoice is a type of e-invoice sent by the sender to the recipient, where the recipient has the rights to accept, reject, or leave the invoice unanswered. In this respect, it differs from the basic e-invoice by granting the recipient more control rights. Commercial invoices require a commercial reconciliation process between the two parties.

Commercial e-Invoice Cancellation Process:

Response Time: The recipient must respond to the commercial e-invoice sent to them within 8 days. If no action is taken within this period, the invoice is automatically considered accepted.

Rejection Process: If the recipient believes there is an error or dispute with the invoice, they can initiate a rejection process via the system. The rejection process will mark the invoice as rejected in the e-Invoice system.

Written Notification via KEP: The rejection process is not only done through the system. The recipient must also send a written rejection notice to the seller via KEP (Registered Electronic Mail). This step is important for legal validity.

Cancellation via Reconciliation: If the parties reach a written agreement, the invoice is considered canceled. This reconciliation is carried out via KEP and is recorded.

e-Archive Invoice Cancellation

e-Archive invoices are digital invoices that are valid within the framework of the Tax Procedure Law and have the same legal status as paper invoices with wet signatures. Therefore, they can be canceled if they contain errors or incorrect information.

Cancellation Period

According to the regulations of the Revenue Administration (GİB), e-Archive invoices must be canceled within 8 days from the date of issue. However, to avoid system delays and enhance transaction security, it is recommended that the cancellation be completed within 7 days.

What Can Be Done After the Cancellation Period Has Passed?

Once the legal cancellation period (8 days) has passed, the cancellation process cannot be carried out via the e-Archive Portal. In this case, the following alternative methods should be considered:

Issuing a Return Invoice: The buyer can issue a return invoice for the same amount to the seller, ensuring necessary corrections in both parties' accounting records. This method is commonly used when a commercial reconciliation is reached between the parties.

Issuing a New Invoice: After the seller has recorded the incorrect invoice in their accounting, they can issue a new and correct invoice to the buyer. Even if the old invoice is not "canceled," it will be corrected from an accounting perspective.

Written Application to GİB (Petition): In special and exceptional cases, the reason for the inability to cancel the invoice can be justified in writing and submitted as a petition to GİB. This method should be used as a last resort, as it may take time and does not guarantee a result.

Conclusion

The e-Invoice and e-Archive invoice systems provide significant advantages to businesses by simplifying tax and accounting processes in the digital world. However, these systems may occasionally encounter incorrect invoice issuances and transactions. In such cases, invoices must be canceled by following the correct legal procedures. The e-Invoice cancellation process begins with the rejection of the invoice by the buyer and is completed with specific actions carried out within set timeframes. While basic e-invoices have a simpler structure, commercial e-invoices provide the recipient with more control and require written reconciliation. e-Archive invoices, on the other hand, offer alternative solutions for transactions not completed within the legal cancellation period, such as issuing a return invoice or issuing a new invoice.