Can product descriptions (names) on e-Invoices be in a foreign language?
According to the provisions of the Tax Procedure Law (VUK), invoices must be issued in Turkish, and if foreign names/descriptions are used, their Turkish equivalents must also be provided.
On the other hand, Article 215 of the Tax Procedure Law No. 213 states that the books and records to be kept under this Law must be maintained in Turkish; the Turkish currency must be used in records and documents; and documents may also be issued in foreign currency, provided that the Turkish currency equivalent is indicated. However, companies whose paid-in capital (allocated to Turkey for companies established abroad) is at least 100 million USD or its equivalent in foreign currency and where at least 40% of the capital is owned by persons whose residence, legal, and business headquarters are outside Turkey may be permitted by the Council of Ministers to keep their records in a currency other than Turkish Lira.
Tax Procedure Law
NINTH CHAPTER Recordkeeping System
Obligation to Keep Records in Turkish and Use Turkish Currency Article 215
(Amended: 16/7/2004-5228/7 Article)
- It is mandatory to keep the books and records required under this Law in Turkish. However, as long as there are records in Turkish, entries in other languages can also be made in the books. These entries can also be made in other books certified in a way that will not change the tax base.
- a) The Turkish currency is used in records and documents. Documents may also be issued in foreign currency, provided that the Turkish currency equivalent is shown. However, for documents issued to foreign customers, the condition of showing the Turkish currency equivalent is not required.
b) Companies whose paid-in capital (allocated to Turkey for companies established abroad) is at least 100 million USD or its equivalent in foreign currency and where at least 40% of the capital is owned by persons whose residence, legal, and business headquarters are outside Turkey may be permitted by the President (formerly by the Council of Ministers) to keep their records in a currency other than Turkish Lira. The President has the authority to reduce these limits by half or increase them by up to double based on sectors. The obligation to keep records in Turkish currency starts from the fiscal period following the fiscal period in which these conditions are violated.
ba) Transactions made in Turkish currency are converted into the relevant currency at the Central Bank of Turkey’s exchange rate on the day the transaction is conducted. The values of economic assets and the tax base are determined based on the currency in which the records are kept and are declared by converting them into Turkish currency at the exchange rate of the first day of the month in which the tax return is to be filed. Turkish Lira amounts are used for tax payment, offsetting, and refund transactions.
bb) Taxpayers who keep records in other currencies cannot apply inflation adjustment under Article 298(A) as long as they keep records in other currencies. If they start keeping records in Turkish currency, they cannot benefit from the provisions of the aforementioned article for three years.
Records Must Be Written in Ink Article 216
The books that are required to be kept under this law must be written in ink or by machine. It is permissible to use carbon paper and to make copies with ink pads and other stamp devices.
In all books, temporary totals may be made with pencil until the accounts are closed.
Correction of Errors in Records Article 217
Errors in journal entries can only be corrected according to accounting principles. If figures and words are written incorrectly in other books and records, corrections can only be made by crossing out the incorrect figures and words in such a way that they remain readable and writing the correct ones above, beside, or in the relevant account.
It is forbidden to make a record illegible by scraping, crossing out, or erasing it.
No Blank Lines, Pages Cannot Be Removed Article 218
In the books, the lines intended for recording cannot be left blank without drawing a line through them, and they cannot be skipped. In bound books, pages cannot be torn out, and the order of the certified detachable leaves cannot be altered or destroyed.
Recording Time Article 219
(Amended: 30/12/1980 – 2365/32 Article) Transactions must be recorded in the books promptly, as follows:
a) Transactions must be recorded within a time frame suitable to the volume and nature of the business, in a manner that does not impair the order and clarity of accounting. Such records cannot be delayed for more than ten days.
b) In establishments that keep continuous records based on authorized documents such as accounting slips, primary notes, and payrolls bearing the signature and initials of authorized officials, recording transactions in these documents is considered equivalent to recording them in the books. However, these records must be transferred to the main books within no more than 45 days.
c) Transactions must be recorded daily in cash books, daily retail sales and revenue books, and self-employed earnings books.
Source: Istanbul Chamber of Certified Public Accountants
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