WHAT IS E-INVOICE?

e-Invoice Application is an application created by the Revenue Administration in order to provide a safe and reliable circulation of the invoices in the form of electronic document between parties.

Taxpayers who wish to issue an e-Invoice can only issue an invoice to the recipients registered in the system. Similarly, taxpayers who wish to receive e-Invoice can only receive invoice from the taxpayers who issue an invoice through the application. Hence, taxpayers who wish to to issue or receive invoice are required to be mutually registered in the system.

e-Invoice is not a new document type and has the identical legal qualities with printed invoices.

Taxpayers who have to issue an invoice due to product and service sale can issue a paper invoice within the scope of general provisions as well as an e-Invoice within the scope of conditions stated in this announcement. It is not possible to issue both paper invoice and electronic invoice together for the same product or sale transaction.

OBLIGATION TO BECOME AN E-INVOICE USER

Those who hold mineral oil license under Petroleum Market Law dated 4/12/2003 and numbered 5015 and taxpayers who purchased product from these people in 2011 calendar year and who have 25 Million TL gross sales proceeds at least as of 31/12/2011.

Those who produce, construct and import the products listed in the annexed (III) list of Special Consumption Tax Law dated 6/6/2002 and numbered 4760 and those who purchased product from these people in 2011 calendar year and who have 10 Million TL gross sales proceeds at least as of 31/12/2011.

Taxpayers who benefit from the electronic invoice application within the scope of this announcement and Tax Procedural Law General Communique with serial number 397 are required to issue an e-Invoice for delivery of goods or performing of an service carried out between one another.

Taxpayers who benefit from the Electronic Invoice Application shall check whether the payer is registered in the user list available in the website www.efatura.gov.tr, If the payer is a registered user then an electronic invoice shall be issued, if not, then a paper invoice shall be issued.

INVOICE OPERATION OBLIGATION

Taxpayers that benefit from electronic invoice application with the method of integration of information systems within scope of Tax Procedural Law General Communique with serial number 397 are required to have their systems available for receiving and sending invoices and respective messages without interruption on 7 days/24 hours basis. Integration permits of the taxpayers that fail to fulfill this obligation for reasons other than force majeure conditions will be canceled and they will be using electronic invoice application only through portal method. Taxpayers which benefit from electronic invoice application through integration of their information systems are required to notify Revenue Administration about the date and duration of the interruption three business days before such interruption in the case that access to their systems will be interrupted due to maintenance, repair, review etc. actions to be performed on their systems. The interruption may under no circumstances exceed two days.

Taxpayers that are obliged to be subject to electronic invoice application may not issue invoice on paper to other taxpayers that are registered to electronic invoice application; if such is issued, invoices issued on paper are deemed to never exist.

Taxpayers that are obliged to be subject to electronic invoice application are required to receive the electronic invoices submitted by other taxpayers that are registered to electronic invoice application. Taxpayers that fail to fulfill this obligation will be subject to penal sanctions imposed on taxpayers that fail to receive invoice as stipulated in respective provisions of Tax Procedural Law.

E-INVOICE AREAS OF USE STEPS

Application for e-Invoice Application to Revenue Administration (GiB)

Companies are required to appeal to GIB (Revenue Administration) directly by filling out "e-Invoice Application Form and Covenant (for Legal Entities)" in the website http://www.efatura.gov.tr in order to send an receive e-Invoices and get them signed by authorized person(s) and acquire the account information they are going to use in e-Invoice transactions.

The documents required for the application:

• The signed original copy of "e-Invoice Application Form and Covenant (for Legal Entities)"
• The signed original copy of "Covenant of Electronic Financial Seal Certificate Holder"
• Notary certified copy of Turkish Trade Registry Gazette in which the corporation charter takes place (in the event of a title change, the notary certified copy of Turkish Trade Registry Gazette in which the latest title is announced shall be added).
• Notary certified copy of the company's list of authorized signatures indicating that person(s) affixing signatures under the company name on the application form are authorized.

Application for Financial Seal

For the electronic “Financial Signature” device required for ensuring data integrity and nonrepudiation of the created e-invoices, “Electronic Financial Seal Certificate Holder Contract” shall be completed and undersigned by authorized person(s) and submitted to Revenue Administration.

Financial Seal is electronic certificate infrastructure established by TÜBİTAK-UEKAE to verify which corporation or persons are the owners of the documents transmitted in electronic environment.

MTaxpayers that are issued with financial seal shall carry out activation of their financial seal certificates (password of the financial seal device) through their authorized persons indicated in the application form.

E-INVOICE USAGE METHODS

Being the first “e-Invoice Private Integrator” in Turkey, İdea Teknoloji Çözümleri has become the first and the only e-Invoice Private Integrator granted with “Financial Seal Compliance Evaluation Report” issued by TUBİTAK-BİLGEM Public Certification Center.

Revenue Administration E-Invoice Portal Method

Portal Method is a free-of-charge e-invoice application service offered by Revenue Administration through website address of www.efatura.gov.tr It is possible to create your invoices manually through Revenue Administration Portal or to create them in your own information system in the format established by the Administration and upload them to your Portal account.

Private Integration Method

Companies can benefit from e-Invoice Application by using information systems of taxpayers who are granted with special integration permit by Revenue Administration. In this case, taxpayers that are having their financial seal created, may participate in the application by applying to corporations which are granted with the special integration permit of the Administration. İdea Teknoloji Çözümleri is the first “e-Invoice Private Integrator” in Turkey as approved and declared by Revenue Administration.

Information System Integration Method

This method is developed for the use of taxpayers which can integrate their own information system to the system of the Administration to offer 7/24 uninterrupted connection. Taxpayers that prefer this method are obliged to state in their application letters that they want benefit from e-Invoice application by using integration method. Taxpayers, upon their own discretion, may request closing of their Portal accounts until integration efforts are completed, by indicating such request in their application letter. This term may never exceed 31.12.2013 as indicated in Tax Procedural Law General Communique with serial number 421. Taxpayers that have failed to complete their integration until such date are obliged to issue their invoices via Revenue Administration Portal.

WHO WE ARE

Idea Teknoloji Cozumleri is established in 2005, for the purpose of maintaining effective management of sales processes by using technology.

Today, Idea Teknoloji Cozumleri is the long term partner of many multinational corporations which have extensive sales and distribution network in Turkey and neighboring countries

In order to maximize the profit of those corporations, Idea Teknoloji Cozumleri develops up-to-date software solutions for sales and distribution management, In terms of tax technologies, in other words Taxology, Idea Teknoloji Cozumleri played the pioneer role for roll-out of e-Invoice and e-Ledger in Turkey.

In 2013, Idea Teknoloji Cozumleri, pioneering the way in electronic financial applications, which have been also used in Turkey, is a private company to become the first e-Invoice private integrator, the first platform independent e-Ledger solution provider as well as the first one to obtain e-Archive Invoice service approval certified by the Revenue Administration in Turkey.

Idea R&D Center, which becomes entitled to receive the Authorized R&D Center Certificate from the Ministry of Science, Industry and Technology under "the Law regarding Support of Research and Development Activities" dated 1/13/2014 Idea R&D Center cooperates with academicians expert in their fields from many prominent universities of Turkey with respect to R&D projects.

Idea Teknoloji Cozumleri is keep developing new taxology solutions for sales and distribution management and making preparations of the next step for all the parties to deal with…