E-Invoice Cancellation Process: Step-by-Step Guide

Share:

In the increasingly digital business world, the use of e-invoices is becoming increasingly widespread. E-invoices replace traditional paper invoices, providing businesses with time and cost savings. However, in cases of incorrect invoices or incorrectly issued invoices, it may be necessary to cancel an e-invoice. In this guide, we will explain the e-invoice cancellation process step-by-step and in the simplest terms possible.

What is an e-Invoice and Why Do You Need to Cancel It?

E-invoices are invoices issued and transmitted electronically by the Revenue Administration (GİB). Like paper invoices, they have legal validity and are stored and reported on digital platforms.

The main reasons for canceling an e-invoice are:

• Incorrect amount, VAT rate, or goods/services information entered on the invoice

• Invoice issued to the wrong customer

• Incorrect invoice serial number or date

• Refunds or cancellation requests

Failure to correct incorrect invoices can lead to inaccurate tax records and potential penalties. Therefore, canceling an e-invoice must be carried out correctly.

Who Has the Authority to Cancel an E-Invoice?

E-invoices can be canceled by the taxpayer who issued the invoice or an authorized person. Those authorized to access the e-invoice application can initiate the cancellation process.

In some cases, approval may be required from the party receiving the e-invoice. For example, if an invoice is sent to the wrong recipient, the cancellation process is completed with the recipient's approval.

Requirements for E-Invoice Cancellation

Certain conditions must be met for e-invoice cancellation:

• Registration with the Revenue Administration System: The business's e-invoice user registration must be active to cancel an e-invoice.

• Time Limit: The e-invoice can be canceled within 7 days of its issuance.

• Incorrect Invoices: Cancellations must be made for incorrect or incorrect invoices. A refund or correction invoice is issued for cancellations of standard invoices.

• Appropriate Cancellation Format: E-invoice cancellations must be made digitally and in the format specified by the Revenue Administration.

E-Invoice Cancellation Steps

The e-invoice cancellation process can generally be summarized in three main ways:

Step 1: Logging into the E-Invoice System

First, you must log in to the Revenue Administration's e-invoice portal or integrator system. You will need a username, password, and e-signature to log in.

Step 2: Selecting the Invoice to Cancel

After logging in to the system, find the invoice you want to cancel in the "My E-Invoices" or "Sent Invoices" menu.

• The invoice serial number and date are checked.

• Incorrect fields and the reason for the cancellation are not being processed.

Step 3: Initiating the Cancellation Process

After selecting the invoice, click the "Cancel" button. Some information required during the transaction:

• Reason for cancellation (e.g., incorrect amount, wrong recipient, incorrect product information)

• Cancellation confirmation (optional, detailed explanation can be added)

• After this information is entered, it is confirmed with an e-signature, and the system cancels the invoice.

Recipient Approval for E-Invoice Cancellation

In some cases, the recipient's approval may be required. Specifically:

• If the invoice was sent to the wrong recipient.

• If the contract or transaction has special terms and conditions between the parties.

• In such cases, the recipient must log in to the system and approve the cancellation request. The cancellation is not considered complete until approval is given.

Records of Cancelled E-Invoices

After the e-invoice cancellation process is completed, the Revenue Administration (GIB) system stores the canceled invoice in the "Cancelled Invoices" section.

• The original data for canceled invoices is not deleted; it simply becomes invalid.

• Cancelled invoices should be noted in accounting and tax records.

This will prevent any future issues during audits or reporting.

Common Errors and Solutions

Some common errors in the e-invoice cancellation process are:

• Timeout: If an invoice is attempted to be canceled after 7 days, the system rejects it. Solution: Issue a correction invoice.

• Incorrect Serial Number: Selecting the wrong invoice prevents the cancellation. Solution: Carefully check the invoice serial number.

• Lack of Recipient Approval: The cancellation is not completed without the recipient's approval. Solution: Contact the recipient and obtain approval.

• System Errors: Temporary outages may occur in the integrator or GIB systems. Solution: Wait a short time and try again or call the support line.

Digital Tools That Simplify E-Invoice Cancellation

Today, many businesses use integrator solutions for e-invoice cancellation and management. These solutions make the process both fast and error-free. Advantages:

• One-click cancellation

• Automatic registration and accounting integration

• Time and cost savings

• Alert and suggestion system for incorrect invoices

Digital business management platforms like Bayiloji allow you to manage your e-invoices and other financial processes from a single point.

Points to Consider After Cancellation

After completing the e-invoice cancellation:

• Update accounting records.

• Keep a digital copy of the canceled invoice.

• Send a notification to the recipient.

• If you are going to issue an invoice for the same transaction again, ensure you have entered the correct information.

Tips

E-invoice cancellation is quite easy when the correct steps are followed. In summary:

• Carefully select the invoice and determine the reason for the error.

• Initiate the cancellation process within 7 days.

• Approve it with an e-signature through the Revenue Administration (GIB) portal or integrator system.

• Contact us if recipient approval is required.

• Note the canceled invoice in your accounting records.

Conclusion

E-invoice cancellation is a common occurrence in the increasingly digital business world. Timely cancellation of erroneous invoices is crucial for both tax compliance and business security. A step-by-step process reduces the risk of errors and streamlines workflow.

Remember, with digital tools and the right methods, e-invoice cancellation is now a hassle-free process. Platforms like Bayiloji make this process both convenient and error-free, adding value to your business.