E-Invoicing is the common name of the system that will enable to keep, record, store and submit invoices in digital format according to Turkish Tax Procedure Law.

E-Invoicing application will transfer invoices between peers in a secure way. The taxpayers that are within the scope of this obligation have to finish e-invoicing implementation process and apply to Turkish tax authority before September 1, 2013.

These taxpayers will not be allowed to issue hardcopy invoices to taxpayers that are registered in e-invoice system. In the event they don’t comply with the regulation, legally it will be deemed that they didn’t issue their invoices.

E-invoicing is an application developed and managed by the Ministry of Finance to enable electronic documentation of invoices prepared on paper; electronic transmission, storage, and presentation of these; and safe and sound circulation of these amongst the users registered in the system. The e-invoicing application has been established and run by Turkish tax authority. Users can send or receive e-invoices through this application. In order to utilize the system, there are two options:

Users who established sufficient IT systems are allowed to integrate their IT and accounting software directly (server to server) with the center of e-invoicing system and process their e-invoices. Users who have not adequate IT system, can access the system through a portal in order to send or receive e-invoices. E-invoice portal is run by Turkish tax authority. The portal is a web application which hosts and serves basic functions. Once the accounts are activated, the users will be able to log-on to the e-invoice portal and be able to send and receive e-invoices. In order to use e-portal, taxpayers must apply the Turkish tax authority and be registered to the system.

Within the scope of the application;

• For the users registered in the system, it is mandatory to send and receive e-invoices to/from other users registered in the system.

• Users will continue to send paper invoices to the taxpayers which are not registered in the system.

• Sent or received e-invoices should be downloaded and saved in electronic format and must be presented whenever required.

In order to guarantee the authenticity and source of invoices, financial seals will be required. This seal will be an electronic certificate issued by The Scientific and Technological Research Council of Turkey in coordination with the Turkish tax authority.

For operational details about the two systems in question, users can refer to http://www.efatura.gov.tr web page.