Today, with the rapid advancement of digitalization, electronic systems come to the fore in accounting and tax transactions as in many areas. One of these systems is the Ledger Declaration System. The Ledger Declaration System is an important tool that enables taxpayers to keep their accounting records electronically, issue documents and submit tax returns.

Apart from this system in the digital environment, the business book is a version of this system that is kept on paper or in a digital environment. The ledger declaration system and the business ledger have different meanings that often need clarification. The business book is a financial diary in which all financial movements are recorded. It has a legal obligation. The Ledger Declaration system is a system for keeping business books electronically. 

You may be interested in: What is a Business Ledger? Who Keeps a Business Book?

What is the Ledger Declaration System?

The declaration system is a system that enables taxpayers (taxpayers or tax institutions) to report their income, expenditures and the related taxes to be paid in a certain period to the authorized institutions in a certain format. This system is of great importance in collecting tax revenues, ensuring tax justice, and monitoring economic activities.

The Declaration System is realized through an electronic platform developed by the Revenue Administration (RA) and facilitates taxpayers to fulfill their tax obligations. Thanks to this system, taxpayers can keep their books electronically, submit their tax returns online and easily follow other tax transactions. The Ledger Declaration System saves time and costs by reducing paperwork and facilitating tax audits.

Key Features of the Ledger Declaration System

• Electronic Ledger System: Taxpayers can keep all accounting records electronically.
• Document Editing: All documents such as invoices and delivery notes can be issued and stored electronically.
• Filing Tax Returns: All tax returns such as income tax and corporate tax can be submitted online.
• Making Notifications: Periodic notifications such as withholding tax and VAT can be made through the system.
• Making Payment: Tax debts can be paid through the system.
• Inquiry: Taxpayers can easily query their tax debts and declaration status through the system.
• Obtaining Information: Taxpayers can access up-to-date information on tax legislation through the system.

Advantages of the Ledger Declaration System

The Ledger Declaration System is a system that replaces traditional paper ledgers and moves accounting transactions to the digital environment. This system has many advantages for both taxpayers and the state.

Advantages for Taxpayers;

• Time and Cost Savings: Saves time and labor by eliminating manual processes. The need for consumables such as paper and ink is reduced, thus reducing costs.
• Reduced Error Rate: Electronic transactions significantly reduce the risk of human error. Automatic calculation and control of data reduces the possibility of inaccuracy.
• Data Security: Data is stored on secure servers, minimizing the risk of data loss in natural disasters such as fire, flood, or theft.
• Ease of Access: You can access the system from anywhere with an internet connection and perform your transactions whenever and wherever you want.
• Efficiency: Your productivity increases by automating your transactions. Reporting processes are accelerated, so you can make faster decisions.
• Environment-Friendly: It offers an environmentally friendly solution that reduces paper usage.

Who can use the Ledger Declaration System?

The Ledger Declaration System is a system in which all real and legal persons in Turkey who are above a certain income level or engaged in a certain activity are obliged to keep their accounting records electronically. This system was developed by the Revenue Administration and is used to facilitate tax audits and prevent tax losses.

So, who is obliged to use this system?

• Self-Employed Professionals: All persons practicing self-employment such as doctors, lawyers, engineers, and architects.
• Those Engaged in Trade: All self-employed persons, who own a store or engage in any commercial activity.
• Institutions: Legal entities such as companies, and cooperatives.
• Simple Method Income Taxpayers: Taxpayers who are below a certain income threshold and pay tax in the simple method.

How to Apply for the Ledger Declaration System?

To apply for the Ledger Declaration System, taxpayers must apply to the Revenue Administration. The application process is usually carried out electronically. Necessary documents and information are requested during the application.

To apply electronically;

• Official Website of the Ledger-Declaration System: The most common method is to apply through the system's official website. This website has an application form that will guide you step by step.
• E-Government Gateway: In some cases, you can also apply through the e-Government portal.

Which Transactions Can Be Made in the Ledger Declaration System?

Through this system, many transactions can be done easily and quickly. Here are the main transactions you can do in the Ledger Declaration System:

• Electronic Bookkeeping: Keeping all your accounting records (income, expenses, inventory, etc.) in a digital environment. Easy search and review of historical records.
• Invoice Cutting: Issue and organize your sales and purchase invoices electronically. Quick access and editing of invoice information.
• Tax Declaration: Submit all your tax returns such as income tax, corporate tax, and VAT electronically. Filling out your tax returns easily through pre-prepared templates.
• Making Notifications: Make periodic notifications such as withholding tax returns and VAT declarations through the system.
• Document Storage: Securely store all your accounting documents electronically. You can access your documents at any time.
• Inquiry: You can easily query your tax debts, declaration status, and other accounting information through the system.
• Inventory Tracking: Track your stocks and get inventory reports.
• Fixed Asset Tracking: Track your fixed assets (buildings, vehicles, machinery, etc.) and make depreciation calculations.
• Payment Tracking: Track payments to customers and suppliers.
• Reporting: Create various accounting reports (profit and loss statement, balance sheet, etc.).

The Ledger Declaration System is an important tool that facilitates and accelerates tax transactions for taxpayers. Through this system, taxpayers get rid of paperwork, save time and cost, and prepare for tax audits more easily. Thanks to the advantages offered by the Ledger Declaration System, taxpayers' tax compliance increases, and tax losses are prevented.