e-Fatura, e-Arşiv and KDV basics: what a newly formed company must set up
Every invoice a Turkish company issues is, sooner or later, electronic and visible to the Revenue Administration (GİB). The two systems are e-Fatura, for invoices between registered users, and e-Arşiv, for everyone else; value added tax (KDV) rides on every invoice at one of three rates. A new company that gets the setup wrong in its first weeks issues invalid invoices and loses VAT deductions. This guide explains the thresholds, the rates and the setup sequence, in the order your SMMM will raise them.
e-Fatura: who must use it
e-Fatura is the closed system in which invoices are exchanged electronically between taxpayers registered in it; a paper or PDF invoice between two e-Fatura users is void. Enrolment is compulsory for companies whose gross sales exceed the threshold set by the Tax Procedure Law General Communiqué No. 509 as amended (₺3 million for the general case in recent years, lower for e-commerce sellers, real-estate and vehicle traders, and some other sectors), from the July following the year in which the threshold was passed; and for certain sectors from the start regardless of turnover. Companies below the threshold may enrol voluntarily, and many do because large customers and public buyers insist on e-Fatura. Enrolment is made on the GİB portal with the company's financial seal, through the GİB's own portal or a licensed private integrator.
e-Arşiv: the invoice to everyone else
An e-Fatura user issues every invoice to non-users (consumers, foreign customers, companies not enrolled) as an e-Arşiv invoice through the same system. A company that is not an e-Fatura user still falls into e-Arşiv for individual invoices above a threshold: under the Communiqué, invoices to final consumers and to taxpayers exceeding ₺5,000 including VAT on a single day must be issued as e-Arşiv through the GİB's free portal, not on paper. Export invoices by e-Fatura users are issued as e-Fatura with the customs declaration link. The thresholds are revised by communiqué; your accountant tracks the current one, and gib.gov.tr publishes it.
KDV: the three rates and the monthly mechanics
| Rate | Applies to (examples) |
|---|---|
| 1% | Basic foodstuffs listed in Annex I, certain agricultural products, small residential units under the area rule, some newspapers and books |
| 10% | Most other food, restaurants and accommodation, textiles and clothing, medicines and medical devices, cinema and theatre, some education services |
| 20% | The general rate: services, electronics, vehicles, furniture, professional services, construction materials, everything not in the lists |
The rates have stood at 1%, 10% and 20% since July 2023; the lists are annexes to the Council of Ministers' decision under the VAT Law and are amended by Presidential Decision. Each month the company deducts the VAT on its purchase invoices from the VAT on its sales invoices and pays the difference by the 28th; a surplus of input VAT is carried forward, not refunded, except for exports and a few listed cases. Exports of goods and most services to customers abroad are exempt with the right to deduct, which is why exporters accumulate refundable VAT. See our monthly accounting guide for the calendar.
What a new company sets up, in order
- Tax registration and the yoklama visit: automatic on trade registration; the tax office visits the address before the tax certificate is active.
- Financial seal (mali mühür) for the company, applied for at the TÜBİTAK Kamu SM through the GİB; and an e-signature for the director. Nothing electronic works without them.
- e-Defter enrolment where the company keeps balance-sheet books; newly formed capital companies are enrolled from the start under the current communiqué, and the ledgers are certified electronically.
- e-Fatura or e-Arşiv enrolment and the choice between the GİB portal and a private integrator; the integrator's monthly fee is small, the portal is free but manual.
- Invoice series and numbering, the company's logo and bank details on the template, and the foreign-currency fields for export invoices.
- POS and e-commerce: a payment-recording device (ÖKC) or e-Arşiv integration for retail sales, and the ETBİS registration for online sellers.
- KEP address and UETS for official notices, and the e-Tebligat registration at the tax office.
Common errors in the first months
- Issuing a PDF invoice to an e-Fatura customer: void, and the customer's VAT deduction with it.
- Invoices dated more than seven days after delivery of the goods or service.
- Wrong rate on a mixed sale, or 20% charged on a 10% item; the difference is still owed to the state.
- Export invoice without the customs declaration link, so the exemption is questioned.
- Letting the financial seal certificate expire; the seal has a three-year life.
Sources
- gib.gov.tr — Revenue Administration: e-Fatura, e-Arşiv, e-Defter portals and communiqués; VAT rates
- mevzuat.gov.tr — VAT Law 3065; Tax Procedure Law 213; General Communiqué 509 on electronic documents
- resmigazete.gov.tr — Official Gazette: Presidential Decisions on VAT rate lists
- turmob.org.tr — guidance for licensed accountants on electronic documents
Questions
My company is new and small. Do I need e-Fatura on day one?
Not by turnover, unless you are in a sector enrolled compulsorily. You will still need e-Arşiv for invoices above the threshold and e-Defter from the start, both with the financial seal. Most companies trading with larger customers enrol voluntarily in the first months.
Can I invoice a foreign customer in euros without VAT?
Export of goods and most services performed for a customer abroad and used abroad are VAT-exempt with the right to deduct. The invoice shows the foreign-currency amount and its lira equivalent at the Central Bank rate; your accountant confirms the exemption article to quote and the proof the tax office expects.
What is the financial seal and who keeps it?
The mali mühür is the company's electronic seal issued by TÜBİTAK Kamu SM on the GİB's application; it signs e-invoices and e-ledgers. It belongs to the company, is kept by the director or a person authorised in writing, and expires after three years.