e-Ledger (e-Defter)

An e-Ledger (e-Defter) is the preparation of the general ledger (defter-i kebir) and journal that companies are required to keep as electronic files in line with the Tax Procedure Law (VUK) and Turkish Commercial Code (TTK) regulations, and their retention in electronic form. This also makes it possible to audit accounting records electronically. Following the closing certification of their commercial books, companies that switch to the e-Ledger application are no longer required to keep printed journals and general ledgers.

Developed for companies using Factorbooks, the e-Ledger solution is an application that allows accounting records to be prepared and archived digitally in line with the formats and standards set by the Turkish Revenue Administration (GİB), without using a paper general ledger and journal.

It is an electronic file containing information about the books, created in line with the procedures and principles in the communiqué and the standards set by the Administration, in the form of an electronic file approved with the Administration's financial seal.

eXtensible Business Reporting Language technology, known as XBRL, is used as an XML-based standard for preparing books electronically, and this standard is internationally recognized.

Taxpayers required to switch to the e-Invoice (e-Fatura) application, companies subject to independent audit under the Turkish Commercial Code and other taxpayers brought into scope by GİB communiqués are required to keep e-Ledgers.

Because the scope and transition dates are updated by communiqués, we recommend checking your business's status in GİB's current e-Ledger announcements. Taxpayers not within the scope of the obligation can switch to the e-Ledger application voluntarily.

Taxpayers who are required to switch to the e-Invoice system must also switch to the e-Ledger system. However, if a taxpayer is not required to switch to e-Invoice, it is not required to switch to e-Ledger either.

If you are an e-Invoice taxpayer under GİB communiqués, you must switch to e-Invoice and, along with it, use the e-Ledger application. However, if you are not in that taxpayer position, being an e-Invoice user is not required. You can switch to the e-Ledger system voluntarily.

No. After switching to the e-Ledger system, there is no need to send the content of accounting records to the Turkish Revenue Administration. Sending the e-Ledger berat to GİB is sufficient.

Errors in the e-Ledger can be corrected before the legal period for the e-Ledger berat expires. However, attention should be paid to the legal amendment period granted to taxpayers by GİB. If the period has not passed, what you need to do is delete the incorrect ledger berat in the system and upload the corrected ledger berat in its place.

e-Ledger applications are made by filling in the application form and letter of undertaking on the official e-Ledger website https://uyg.edefter.gov.tr/edefterbasvuru/. If you are an individual, you must sign the form and letter of undertaking with an e-signature; if you are a legal entity, you must approve the documents with the financial seal of the applying organization.

The following documents and steps are also required during the application:

• A time stamp or financial seal
• Having software that has received GİB compliance approval,
• Updating the taxpayer's existing program to the e-Ledger format,
• If the e-Ledger will be stored by the taxpayer, choosing a suitable archiving option.

The relevant provisions of Electronic Ledger General Communiqué No. 1, which sets out the procedures and principles for the e-Ledger application, list those required to keep e-Ledgers as follows:

Taxpayers required to switch to the e-Invoice application - the taxpayer groups within the scope of the obligation are detailed in the relevant provisions of Tax Procedure Law General Communiqué No. 421.

Companies subject to independent audit under TTK 397/4

Individuals and/or legal entities other than those above who are under a legal obligation, but who meet the conditions in Electronic Ledger General Communiqué No. 1, may join the e-Ledger application voluntarily if they wish.

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There are a number of points that those who will create, record, retain and present their books electronically must pay attention to. The first is that those who move their paper books to an electronic environment can no longer continue to keep physical books. In other words, when switching to e-Ledger, the physical books must be properly closed and certified.

Second, legal entity taxpayers applying for e-Ledger must have a financial seal, and individual taxpayers must have a financial seal or a qualified electronic signature. This is because the proof requirement for books and records, including the e-Ledger application, is secured by a financial seal, qualified electronic signature or time stamp.

In addition, taxpayers who will create, record and present their books electronically must use software that has received compliance approval from the Turkish Revenue Administration.

As a natural consequence of the e-Ledger application being a legal obligation for the groups listed above, certain legal consequences are attached to this obligation.

In this context, it is stipulated that the penalty provisions set out in the Tax Procedure Law (VUK) will apply to taxpayers who are required to switch to the e-Ledger application but fail to do so within the deadline.

In addition, for taxpayers who do not switch to the application but continue to keep books outside e-Ledger, the books and records they keep outside e-Ledger are deemed not to have been kept.