Basic e-ledger and e-invoice matters in tax audits

Cem Onat

Many companies have been included in the scope of e-ledger, e-invoice and e-archive Invoice through the communiques issued in the last few years and this number will be increasing in the upcoming years. The Revenue Administration is including more companies and/or sectors with new communiques.

Revenue Administration has also issued new communiques in order to access data in digital environment without any problem. Companies now have to keep the secondary backups of their e-ledger files in their integrator systems and the Revenue Administration can access these backups when deemed necessary and e-invoices are already passing through the systems of Revenue Administration.

Definitely, the aim here is to make audits faster and in a digital environment. The Tax Inspection Board had already been using data in electronic environment for a long time during audits or when identifying risks. As the type and amount of data collected increases, the variety and efficiency of digital methods to be used in audits will inevitably increase. We can even understand from the questions sent to our Tax Technologies and Transformation Department that diversity and efficiency has just started to increase.

In the simplest way, without the requirement for on-site inspection, it is determined which of the invoices issued is printed and which is e-invoice and invitations for explanation are sent to companies for invoices that are not in the appropriate format. During the audits, relevant e-ledgers and e-invoices are requested from the companies and the validity of these files is checked first. Unfortunately, many companies have problems with this first basic step before the content and tax calculations in e-invoice and e-ledger.

Possible problems to be encountered

  • e-Invoices that are not reaching to the recipient
  • e-Invoices that are not reaching to the recipient
  • e-Invoices recorded with only PDF printout
  • Format and signature problems in e-invoice files
  • Format and signature problems in e-ledger and certificate files
  • Incompatibility between e-ledger and certificate files

What to do

In fact, if the errors and problems encountered are detected at early stage, their solutions are so simple. However, many errors are unfortunately noticed after month (s) or year (s) have passed and usually emerge during audits. Of course, solutions may differ depending on the problem or error, but the following measures can be taken for all of them.

  • Verification of files,
  • Checking the contents,
  • Checking the processes.

 

Explanations in this article reflect the writer's personal view on the matter. EY and/or Kuzey YMM ve Bağımsız Denetim A.Ş. disclaim any responsibility in respect of the information and explanations in the article. Please be advised to first receive professional assistance from the related experts before initiating an application regarding a specific matter, since the legislation is changed frequently and is open to different interpretations.