Invoicing and Tax regulation in Turkey
Invoicing Regulation in Turkey
Invoicing in Turkey is mandatory for all transactions: B2B, B2C, and B2G. Companies are required by law to issue an invoice for all goods and services, providing comprehensive and accurate details of the transaction. Compliance is strictly enforced, and non-compliance may result in significant penalties.
Real-Time Reporting / Fiscalization in Turkey
Real-time reporting and fiscalization in Turkey is compulsory for B2B, B2C, and B2G businesses. Turkey has introduced the Revenue Administration Information System (VEDOP) which enables the tracking of commercial transactions in real-time. This has ensured a more effective and efficient tax administration, heightened tax compliance, and reduced shadow economy.
E-Invoicing in Turkey
In Turkey, e-invoicing is mandatory for businesses with a gross sales turnover exceeding 5 million TRY. This regulation applies to all transactions: B2B, B2C, and B2G. Companies below this threshold limit can voluntarily choose to adopt e-invoicing. A company's e-invoices must be issued, sent, received, and stored electronically in compliance with the regulations established by the Revenue Administration.
VAT/GST/Tax Compliance in Turkey
The standard VAT rate in Turkey is 18%, with reduced rates of 8% and 1% depending on the types of goods and services. The VAT mechanism in Turkey is based on a deduction system where VAT charged on sales (output VAT) can be offset with VAT paid on purchases (input VAT). There is a requirement for monthly VAT return filings and businesses must ensure they are accurate and timely to avoid penalties for non-compliance.