How to Issue an e-Invoice? Step-by-Step Guide to Issuing e-Invoices

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With the acceleration of digitalization, the era of paper invoices has largely come to an end for businesses. The e-Invoice system, implemented by the Revenue Administration, has been made mandatory to both reduce costs and decrease the informal economy. Today, for many businesses, using e-invoices is no longer a choice, but a necessity.

What is an e-Invoice?

An e-invoice is a digital version of a paper invoice, created, sent, received, and stored in a digital environment. Legally, it has the same validity as a paper invoice. The difference is that it is issued electronically without the need for physical processes such as printing, shipping, and archiving.

An e-invoice:

• Is prepared in XML format in accordance with GIB (General Directorate of Revenue) standards.

• Is transmitted to the recipient via the GIB system.

• Is stored digitally.

• Even if a paper printout is made, the original document is in its electronic form.

The Difference Between e-Invoice and e-Archive Invoice

e-Invoice is often confused with e-Archive invoice. The main difference between them is:

• e-Invoice is issued between taxpayers registered in the e-Invoice system.

• e-Archive invoice is issued to individuals or companies that are not e-Invoice taxpayers.

Therefore, if your recipient is an e-Invoice user, you should issue an e-Invoice; otherwise, you should issue an e-Archive invoice.

Who is Required to Use e-Invoices?

According to the criteria determined by the GIB (General Directorate of Revenue), the use of e-invoices is mandatory for some taxpayers. In general;

Firms whose gross sales revenue exceeds a certain limit

Businesses engaged in e-commerce activities

Those operating in sectors such as fuel, mining, automotive, alcohol, and tobacco

Businesses providing market registration system, hotel and accommodation services

are required to switch to the e-invoice system.

Requirements Before Issuing an e-Invoice

To issue an e-invoice, certain prerequisites must be met:

1. Financial Seal or e-Signature

• Financial seal for companies

• e-signature is required for sole proprietorships

2. GIB e-Invoice Application

e-Invoice application must be made through the Revenue Administration.

3. Choosing the e-Invoice Method

There are three different methods for issuing e-invoices:

• GIB Portal

• Private Integrator

• Direct Integration

Methods of Issuing e-Invoices

1. Issuing e-Invoices via the GIB Portal

The GIB Portal is a free solution for small businesses.

Advantages

• It is free

• No installation required

Disadvantages

• Requires manual processing

• Not suitable for bulk invoice issuance

• Inefficient for companies with high transaction volumes

2. Issuing e-Invoices with a Private Integrator

Private integrators are companies authorized by the GIB (General Directorate of Revenue).

Advantages

• Fast and practical

• Provides automatic accounting integration

• All e-documents such as e-Invoice, e-Archive, and e-Delivery Note are managed from a single panel

Disadvantages

• It is paid

3. Direct Integration

Preferred by large-scale companies.

Advantages

• Full automation

• Total integration with ERP systems

Disadvantages

• High cost

• Requires technical infrastructure and a software team

How to Issue an e-Invoice?

Now let's get to the most frequently asked question: How to issue an e-invoice?

1. Check if the Recipient is an e-Invoice Taxpayer

The recipient's registration in the e-invoice system should be checked using their tax number or Turkish Republic ID number.

2. Enter Invoice Information

• Invoice date

• Invoice number

• Recipient and seller information

• Product or service details

• Unit price and quantity

3. Perform VAT and Tax Calculations

VAT rates, withholding tax, and other taxes must be entered correctly.

4. Approve the e-Invoice

The invoice is signed with a digital seal or e-signature.

5. Send to the Recipient via GIB

The approved e-invoice is sent to the recipient via the GIB system.

Things to Consider When Issuing e-Invoices

• Invoices should not be issued to the wrong recipient.

• Product and service descriptions must be clear.

• Tax rates must be entered correctly.

• The invoice date and time must be carefully considered.

• Cancellation and return processes must be completed within legal deadlines.

How to Cancel and Refund an e-Invoice?

Cancellation of an e-invoice depends on the recipient's approval. The recipient can reject the invoice within a certain period. Rejected invoices are considered invalid. For accepted invoices, a return invoice must be issued.

Advantages of Using e-Invoices

• Paper, printing, and shipping costs are eliminated

• Invoicing processes are faster

• Archiving is easier

• Error rate is reduced

• Legal compliance is ensured

• It is environmentally friendly

e-Invoice Retention Period

e-invoices must be stored electronically for 10 years. Companies using private integrators can benefit from this storage service.

Frequently Made e-Invoice Errors

• Incorrect tax number entry

• Incorrect invoice type selection

• Incorrect VAT rate entry

• Issuing an e-Archive invoice instead of an e-invoice

Why is e-Invoicing Important for Businesses?

e-Invoicing is not only a legal requirement but also a cornerstone of businesses' digital transformation. It ensures transparency in financial processes and greatly simplifies accounting procedures.

Conclusion

The question of "how to issue an e-invoice?" is one of the fundamental issues that almost every business should know the answer to today. Issuing e-invoices with the right method and tools saves time and eliminates legal risks. By choosing an e-invoicing solution suitable for the size and transaction volume of your business, you can make the process much more efficient.