Today, with the rapid progress of digitalization, many processes in the business world are moving to the electronic environment. One of the most essential examples of this transformation is the e-Ledger application. So, what is e-Ledger and why is it so important? Let's find answers to all the questions you wonder about e-Ledger together.

What is e-Ledger?

What is e-Ledger? E-Ledger is a digital system designed to maintain the journal and general ledgers required under the Tax Procedure Law and the Turkish Commercial Code in an electronic format. These records are prepared using a standardized XML format and are certified with an electronic signature to ensure compliance with financial regulations. The primary objective of the E-Ledger system is to facilitate faster, more efficient, and systematic auditing processes.

Who is E-Ledger Mandatory for?

The e-Ledger application is mandatory for all natural and legal persons exceeding a certain turnover. Exactly who is obliged to keep e-Ledger may vary according to the turnover limits set by the Ministry of Finance each year. Therefore, business owners need to follow the current legislation.

 What are The Advantages of e-Ledger?

E-ledger draws attention to the numerous advantages it offers to businesses. E-ledger in Turkey is used to ensure tax compliance and facilitate audits.  Here are the main advantages of e-ledger:

• Time and Cost Savings:

Expenses such as paper, ink, and printing are eliminated.

Processes such as printing, approving, sending, and archiving documents are automated.

Time losses are minimized and personnel are directed to more productive tasks.

• Reduced Error Rate:

Through the records kept electronically, data entry errors are minimized.

Through automatic controls, errors are detected and corrected instantly.

• Data Security:

Data secured with an electronic signature is stored more securely.

It offers a system protected against unauthorized access.

• Remote Access:

The system can be accessed from anywhere and at any time.

Facilitates cooperation and coordination.

• Ease of Integration:

It can be easily integrated with other accounting and ERP software.

It enables business processes to become more streamlined.

• Ease in Tax Audits:

Provides a more transparent image in tax audits.

Accelerates audit processes.

• Data Analysis and Decision-Making:

Provides businesses with more accurate and up-to-date data, enabling them to make better decisions.

• Environment Friendly:

Provides an environmentally friendly approach by reducing paper consumption.

What is an e-Ledger Taxpayer? Who Should Switch to e-Ledger?

An e-Ledger taxpayer is any natural or legal person obliged to keep an e-Ledger. All taxpayers exceeding a certain turnover are required to switch to e-Ledger.

How to Apply for e-Ledger?

The e-invoice application is made online through the methods determined by the Turkish Revenue Administration. The documents required during the application and the steps to be followed are explained in detail on the official website of the Turkish Revenue Administration.

The e-invoice application is a completely electronic process. You can easily apply by following the steps determined by the Turkish Revenue Administration (TRA).

Application Steps are as follows;

Accessing the GİB E-Invoice Portal: You can access the application page by entering. You should carefully read the instructions on the page. Enter the information requested from you in the form that opens completely and correctly. This information includes;

• C. Identity Number or Tax Number
• Name Surname or Title
• Contact Information
• E-signature or Certified Public Accountant Seal Information
• Other required information

Approval with E-signature or Certified Public Accountant Seal: After filling out the form, approve your application with your electronic signature or certified public accountant seal. You need to have the necessary software and hardware for this process. After entering all the information correctly and approving it, your application will be completed.

What is a Potential Taxpayer?

A potential taxpayer, as the name suggests, is a general term used for individuals who do not fully meet the conditions to be a taxpayer at the moment but may meet these conditions in the future. In other words, they may become taxpayers if a certain action or situation occurs, even though they are not obligated to pay taxes. It is significant for these taxpayers to prepare in advance and establish the necessary infrastructure for the e-Invoice system. So, who can be a potential taxpayer?

• Those considering starting a new business: Individuals who want to start a company or practice a profession are considered potential taxpayers, even if they have not started their activities yet.
• Foreign investors: Foreigners who want to invest in Turkey can obtain a potential tax number before making their investment.
• Real estate buyers: Since there is a tax obligation for the purchase of real estate above a certain value, these individuals are also considered potential taxpayers.
• Those who acquire assets through inheritance: If the value of the assets acquired through inheritance exceeds a certain limit, a tax obligation may arise, and these individuals may become potential taxpayers.

When to switch to e-Ledger?

The mandatory transition to e-invoicing varies depending on the turnover limits set by the Turkish Revenue Administration. Therefore, taxpayers need to assess their situation to determine the transition date.

General Mandatory Transition:

• Those who are required to keep books on a balance sheet basis: They are required to switch to the e-invoice system as of January 1, 2025.
• Those who choose to keep books on a balance sheet basis voluntarily: They are required to switch to the e-invoice system as of January 1, 2025.

Transition for E-Invoice Users

• Taxpayers who started using e-invoicing as of July 1, 2023: They are required to switch to the e-invoice system as of January 1, 2024.

In conclusion, the e-invoicing system is an essential system that enables businesses to operate more efficiently, securely, and transparently. Both businesses and the government benefit from e-invoicing.