With the rapid advancement of digitalization today, many business processes are transitioning to electronic platforms. One of the most significant steps in this transformation has been the digitalization of invoicing. E-invoice and e-archive are two commonly encountered and often confused terms in this process. In this article, we will explore in detail the differences between e-invoice and e-archive, and help businesses make informed decisions on the matter.
1. What is an E-Invoice?
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An e-invoice is a type of invoice that is issued, sent, and stored electronically in accordance with the standards set by the Revenue Administration (GİB). It is a fully digital process that replaces traditional paper invoices. The use of e-invoice is mandatory for businesses designated by the Revenue Administration.
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Features:
- Issued electronically: Created in a digital environment instead of on paper.
- Approved by GİB: The invoice is approved through the GİB system and delivered to the recipient.
- No paper copy can be issued: As a fully digital document, it cannot be printed.
- UBL-TR format: E-invoices are generated in UBL-TR (Universal Business Language – Turkey) format.
- Financial seal and timestamp: To ensure security and integrity, e-invoices are signed with a financial seal and timestamp.
2. What is an E-Archive?
E-archive refers to electronic invoices issued to taxpayers who are not included in the e-invoice system, or to end consumers. It can be considered a subset of the e-invoice system. Like e-invoices, e-archive invoices are also created electronically, but they are not approved by GİB in the same manner.
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Features:
- Issued electronically: Created digitally, similar to e-invoices.
- Daily reporting to GİB: Information from e-archive invoices must be reported daily to the Revenue Administration.
- Can be printed: A physical copy of the e-archive invoice may be printed.
- Flexible format: There is no mandatory format requirement for e-archive invoices.
- Financial seal not required: Use of a financial seal is not mandatory.
3. When Should Each Document Be Used?
- E-Invoice: The use of e-invoice is mandatory for all taxpayers included in the e-invoice system when invoicing each other.
- E-Archive: E-archive is used for invoices issued to taxpayers not included in the e-invoice system or to end consumers. For example, an invoice issued by a tradesperson to a consumer would be prepared as an e-archive invoice.
4. Why Should E-Invoice and E-Archive Be Used?
- Efficiency: Eliminating paperwork accelerates processes and increases efficiency.
- Cost reduction: Costs related to paper, printing, and shipping are eliminated.
- Eco-friendly: Paper usage is reduced, supporting an environmentally conscious approach.
- Security: Documents stored electronically are more secure.
- Data analysis: Digital data allows for more detailed and effective analysis.
Conclusion
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E-invoice and e-archive are important tools that digitize the invoicing process and enhance operational efficiency. When deciding which document to use, businesses should consider whether the recipient is registered under the e-invoice system. Choosing the correct type of document will facilitate operations both for the business and for the tax authorities.
