How to Issue Foreign Currency e-Invoices and e-Archive Invoices
How to Issue Foreign Currency e-Invoices and e-Archive Invoices
A foreign currency invoice is a document in which the price of a product or service is stated in a foreign currency, such as USD, EUR, or GBP, rather than Turkish lira. When issuing foreign currency e-Invoices or e-Archive Invoices in 2026, it is important to select the correct currency, apply the appropriate exchange rate, calculate VAT accurately, and include the Turkish lira equivalent where required. In this guide, we explain how to issue foreign currency invoices and outline the key points to consider throughout the process.
- A foreign currency invoice is not a separate invoice type. Depending on the recipient's taxpayer status, it must be issued as an e-Invoice or an e-Archive Invoice.
- Foreign currency invoices issued to customers in Türkiye must include the equivalent amount in Turkish lira.
- Stating the exchange rate alongside the currency helps simplify accounting and auditing procedures.
- Issuing an invoice to a customer abroad does not automatically mean that the transaction is exempt from VAT.
- If the exchange rate changes between the invoice date and the payment date, an additional exchange rate difference invoice may be required.
- Exchange rate and tax requirements may vary depending on the nature of the transaction. Therefore, consulting your financial advisor before issuing an invoice is important.
Businesses that sell products or provide services in foreign currencies, as well as those working with international customers, can set their prices in foreign currencies. However, issuing an invoice in a foreign currency does not eliminate obligations relating to exchange rates, VAT, or accounting records.
In summary, when issuing a foreign currency e-Invoice or e-Archive Invoice, you should first select the appropriate currency, apply the relevant exchange rate, review the tax calculations, and include the Turkish lira equivalent on invoices issued to domestic customers.
What Is a Foreign Currency Invoice?
A foreign currency invoice is a document in which the amount payable for goods or services is expressed in a foreign currency rather than Turkish lira. Invoice amounts may be stated in currencies such as the US dollar, euro, or British pound.
A foreign currency invoice is not classified as a separate invoice type under the applicable system. The document format depends on the recipient's registration status in the e-Invoice system:
- If the recipient is registered in the e-Invoice system, an e-Invoice must be issued.
- If the recipient is not registered in the e-Invoice system, an e-Archive Invoice must be issued.
Therefore, the type of invoice is determined by the recipient's e-Invoice registration status, not by the currency used. You can review the differences between e-Invoices and e-Archive Invoices to learn more about the distinctions between these document types.
Is It Possible to Issue Invoices in Foreign Currencies?
Yes. In Türkiye, commercial invoices can be issued in foreign currencies. Article 215 of the Tax Procedure Law permits documents to be prepared in foreign currencies, provided that the applicable requirements are met. For domestic transactions, the equivalent amount in Turkish lira must also be stated. However, this requirement does not apply to invoices issued to customers abroad.
Nevertheless, issuing an invoice in a foreign currency does not mean that payment must necessarily be made in the same currency. The parties may specify the payment currency and applicable exchange rate in their contracts or order terms.
How to Issue Foreign Currency e-Invoices and e-Archive Invoices
The process of issuing foreign currency e-Invoices and e-Archive Invoices generally involves the following steps.
1. Check the Recipient's e-Invoice Registration Status
First, verify whether the person or business receiving the invoice is registered in the e-Invoice system. An e-Invoice must be issued to registered recipients, whereas an e-Archive Invoice should be prepared for those who are not registered. Selecting the wrong document type may require the invoice to be reissued or cancelled.
2. Select the Currency for the Invoice
Choose the currency used in the transaction on the invoice creation screen. Make sure that the selected currency is correctly identified using its international currency code, such as USD, EUR, or GBP.
3. Determine the Applicable Exchange Rate
The exchange rate used on an invoice depends on the contractual terms, the nature of the transaction, and the date on which the taxable event occurs. If the parties have agreed on a specific exchange rate in advance, the contractual terms may be taken into consideration. However, the exchange rate used for tax calculations must comply with the relevant regulations. You can consult your financial advisor to determine the appropriate method for your transaction.
4. Enter Product and Service Details
Add the quantities, unit prices, and other relevant information for the products or services being sold. Enter the applicable VAT rate and any discounts in accordance with the selected currency.
5. Calculate VAT and the Turkish Lira Equivalent
Foreign currency invoices issued to domestic customers must also show the Turkish lira equivalent of the amount stated in the foreign currency. It is important to calculate the VAT base and tax amount using the applicable exchange rate and ensure that the figures are accurately reflected in the accounting records.
6. Include the Exchange Rate on the Invoice
In addition to the currency and total amounts, clearly state the exchange rate used on the invoice. Providing this information makes it easier to review, verify, and record the document in the accounting system.
7. Review and Send the Invoice
Before finalising the invoice, check the recipient's details, invoice date, currency, exchange rate, VAT rate, Turkish lira equivalent, and payment terms. Once you have verified that all information is accurate, send the document through the relevant e-Invoice or e-Archive system.
What Are the Differences Between Foreign Currency e-Invoices and e-Archive Invoices?
Foreign currency e-Invoices and e-Archive Invoices are both electronic documents that can be issued in foreign currencies. The main differences relate to the recipient's registration status and the method used to deliver the invoice.
| Comparison Criteria | Foreign Currency e-Invoice | Foreign Currency e-Archive Invoice |
|---|---|---|
| Recipient | Taxpayers registered in the e-Invoice system | Individuals or businesses not registered in the e-Invoice system |
| Delivery method | Sent through the e-Invoice system | Delivered to the recipient electronically |
| Currency | Foreign currencies can be used | Foreign currencies can be used |
| Exchange rate and TRY equivalent | Specified according to the nature of the transaction | Specified according to the nature of the transaction |
| Tax calculation | Based on the applicable exchange rate and tax regulations | Based on the applicable exchange rate and tax regulations |
Which Exchange Rate Should Be Used When Issuing a Foreign Currency Invoice?
The exchange rate used when preparing a foreign currency invoice depends on the terms of the transaction. If the parties have agreed on a specific exchange rate in their contract, the contractual provisions should be taken into consideration. For tax calculations, the applicable exchange rate on the date the taxable event occurs must be used.
In practice, the foreign exchange buying rates published by the Central Bank of the Republic of Türkiye are frequently used as a reference. However, different practices may apply to advance payments, import and export transactions, exported services, or transactions subject to special contractual terms. Therefore, it is important to verify the applicable exchange rate before issuing an invoice.
Including the following information clearly on a foreign currency invoice helps simplify transaction tracking:
- The foreign currency used
- The unit price and total amount in the foreign currency
- The exchange rate applied
- The Turkish lira equivalent of the invoice amount
- The applicable VAT rate and calculated VAT amount
- The payment currency and due date
How Is VAT Calculated on Foreign Currency Invoices?
Foreign currency invoices are subject to the relevant VAT regulations when the underlying transaction is taxable. The VAT base stated in the foreign currency is converted into Turkish lira using the applicable exchange rate, and the tax amount is then calculated.
For example, assume that a service is invoiced at 1,000 USD, excluding VAT, that the exchange rate used is 40 TRY, and that the applicable VAT rate is 20%. The calculation would be as follows:
| Calculation Item | Amount |
|---|---|
| Service fee | 1,000 USD |
| Applicable exchange rate | 40 TRY |
| Tax base in Turkish lira | 40,000 TRY |
| VAT at 20% | 8,000 TRY |
| Total amount, including VAT | 48,000 TRY |
In this example, the Turkish lira equivalent of the 1,000 USD service fee is 40,000 TRY. After applying the 20% VAT rate, the total amount, including VAT, comes to 48,000 TRY.
Is VAT Applicable to Foreign Currency Invoices Issued to Customers Abroad?
Issuing a foreign currency invoice to a customer abroad does not automatically qualify the transaction for a VAT exemption. Whether VAT applies depends on whether the transaction meets the conditions for a goods export or an exported service.
If goods or services supplied to a customer abroad are used or benefited from in Türkiye, the transaction may be subject to VAT. Therefore, an invoice should not be issued without VAT solely because the customer is located outside Türkiye.
For exported services in particular, certain conditions must be met, including that the service is provided for a customer abroad and that the benefit of the service is obtained outside Türkiye. If these conditions are not satisfied, VAT may still apply even when the customer is based abroad.
For this reason, you should consult your financial advisor to determine whether the transaction qualifies for an export exemption before issuing a VAT-exempt invoice.
When Should an Exchange Rate Difference Invoice Be Issued for Foreign Currency Transactions?
Exchange rates may fluctuate between the date a foreign currency invoice is issued and the date payment or collection takes place. Depending on the nature of the transaction and the payment terms, these fluctuations may result in an exchange rate difference in Turkish lira.
For credit sales, if the exchange rate difference arising at the time of payment is in the seller's favour, the seller may be required to issue an exchange rate difference invoice. If the difference is in the buyer's favour, the buyer may need to issue the invoice. The applicable VAT rate for the exchange rate difference should be determined by considering the VAT rate applicable to the original transaction.
Including the following information on an exchange rate difference invoice makes calculations and accounting records easier to track:
- The date and number of the original invoice
- The exchange rate applied on the original invoice date
- The exchange rate applicable on the payment date
- The calculated exchange rate difference
- The applicable VAT rate
