What Is an E-Invoice? How Is It Issued?

The transition to the digital world is becoming almost mandatory not only for individuals but also for businesses. Companies that operate physically also feel the need to establish an online presence in order to expand their customer base and gain global recognition. In today's world, where online commerce has become indispensable, businesses work alongside brands that provide professional e-commerce solutions to manage every operational process, from supply operations to inventory management. One of these processes is e-invoicing.

So, what is an e-invoice, how is it issued, what are its types, what happens if the cancellation period expires, and what is label information? You can find the answers to these and similar questions by reading our article titled What Does E-Invoice Mean?

What Is an E-Invoice?

In this section, where we answer the question what is an e-invoice and how is it issued, let's start by defining an e-invoice. An e-invoice is a type of invoice issued and stored electronically. Replacing traditional paper invoices and being legally valid in tax and commercial transactions, e-invoices are created, processed, stored, and sent through digital platforms. These invoices enable commercial transactions between businesses to be carried out more quickly, securely, and efficiently in a digital environment. They also reduce paper waste, lower transaction costs, simplify accounting processes, and improve tax compliance.

It is also worth noting that e-invoices are generally created and stored through an electronic document management system or specialized software. Each of these documents is secured in a standardized format with a special electronic signature. Finally, e-invoices must fully comply with tax legislation requirements and must be retained when necessary.

Types of E-Invoices

• Traditional E-Invoice: This is the standard type of e-invoice used to issue and send invoices for commercial transactions electronically. It is exchanged between businesses engaged in commercial activities and is generally used for tax and accounting purposes.
• E-Archive Invoice: This is a type of electronic invoice used to issue and store invoices. Documents are created and processed electronically but are stored for accounting and tax purposes rather than being used directly for commercial transactions.
• E-Dispatch Note: This is a type of electronic document used for the shipment and transportation of goods. It specifies where and when the goods are dispatched and plays an important role in commercial transactions.
• E-SMM: Also known as an electronic self-employment receipt, this is a document showing that payment has been received for purchased products or services. It is frequently used on e-commerce websites and documents transactions between consumers and businesses.
• E-Ledger: This is a type of electronic record used to maintain and store accounting records digitally. It includes income and expense records and digitizes accounting processes.

How Is an E-Invoice Issued?

If you do not know how to issue an e-invoice but need to learn due to the nature of your business, you can find the details in this section of our article. You can follow the steps below to understand the e-invoicing process.

• Authorization: First, you need to register with a tax office in order to issue an e-invoice. After applying to the tax office, you can obtain the necessary authorization to issue e-invoices and proceed with the process.
• Registering with Digital Portals: After obtaining authorization to issue e-invoices, you also need to register with a digital portal. These platforms offer professional e-invoice solutions to businesses, making it much easier to manage the process.
• Invoice Details: After completing these steps, you must have details such as the name, address, and tax identification number of the company for which you will issue the e-invoice.
• Product or Service Details: In addition to customer information, you must also have the details of the products or services covered by the invoice. These details include the product name, quantity, unit price, and total amount.
• Invoice Number: Just as individuals have identification numbers, every invoice has a unique number. Therefore, the e-invoice you issue must also have a number and date.
• Sending: Once all the details of the e-invoice have been entered, you can complete the invoicing process. The invoice can be sent through digital portals, email, or other communication channels.
• Storage: Under Turkish tax legislation, every invoice must be retained for a certain period and presented when required. Therefore, you should find a suitable solution for storing your e-invoices. If you need professional support, you can review T-Soft's e-invoice packages and choose the one that best suits your needs.

Frequently Asked Questions

What Is an E-Invoice Taxpayer?

An e-invoice taxpayer refers to businesses or individuals authorized by the tax office to issue e-invoices. Businesses or individuals that meet certain requirements under tax legislation and obtain authorization to issue e-invoices by applying to the tax office are considered e-invoice taxpayers. Those who have obtained this authorization can issue e-invoices for commercial transactions and conduct electronic invoicing in accordance with tax legislation.

What Is E-Invoice Label Information?

E-invoice label information is a text or code included in an e-invoice that provides information about the contents of the invoice. It is generally used to identify and categorize the invoice contents or classify the transaction in a specific manner. Label information appears on the invoice and is used by invoice recipients or businesses to manage invoice transactions and accounting processes.

Where Is an E-Invoice Issued?

An e-invoice is issued by businesses or individuals authorized by the tax office through a dedicated e-invoice portal or the official website of the tax authority. The e-invoicing process is completed by following a specific procedure through these platforms.

What Is an E-Invoice Subscription?

An e-invoice subscription refers to the process through which businesses or individuals authorized by the tax office apply to the tax office to obtain authorization to issue electronic invoices and carry out e-invoicing. An e-invoice subscription is established by submitting an application in accordance with the procedures determined by the tax office and completing the required documentation.

What Happens If the E-Invoice Cancellation Period Expires?

If the e-invoice cancellation period expires, it may no longer be possible to cancel the invoice, making it more difficult to correct or amend incorrect or erroneous invoices. Once the invoice cancellation period, which covers the procedures that can be carried out within a specific period from the invoice issuance date, has expired, corrections can be made by following the officially established procedures for invoice amendments.

Who Is Required to Use E-Invoices?

E-invoicing is mandatory for taxpayers who meet certain turnover criteria determined by the Revenue Administration. In addition, all companies operating in the e-commerce sector, as well as companies manufacturing carbonated soft drinks, alcoholic beverages, and tobacco products and companies holding mineral oil licenses, are automatically considered e-invoice taxpayers.

? For more detailed information about e-invoices and to review our packages, you can visit our page: Now Is the Right Time to Switch to E-Invoicing!