Invoice or Self-Employed Receipt: Which One Should You Use?

 

Does a self-employed receipt replace an invoice?

 

Although these two official documents may appear similar, they are legally and fiscally different. Therefore, a self-employed receipt cannot be used instead of an invoice. Each document applies to different situations and they are not interchangeable.

 

Is an expense voucher suitable for me?

 

If you do not provide services on a regular basis and your annual income does not exceed TRY 280,000 in 2025, the most practical solution may be for your client to issue an expense voucher on your behalf.
With an expense voucher, withholding tax ranging from 2% to 20% is calculated and paid to the government by the client on your behalf.

Expense vouchers are issued for goods or services obtained from non-taxpayers, tradespeople, or in some cases artists. Examples include software developers, graphic designers, editors, plumbers, locksmiths, or shoe repairers. In addition, online advertising services have also been brought under the withholding tax scope at a rate of 15%.

Since withholding tax is paid in this method, the company does not need to pay VAT to you separately. However, if you work at a workplace and receive your payments via an expense voucher, this may create a social security (SGK) risk. If the work is continuous and dependent on an employer, you should be on payroll and social security premiums must be calculated on your wage; payments should not be made via an expense voucher.

 

Should I issue a self-employed receipt?

 

If the service you provide has become continuous and your annual income exceeds TRY 280,000 for 2025, you are required to issue a self-employed receipt. Individuals issuing self-employed receipts are classified as sole proprietors under Turkish legislation.

 

Advantages of a self-employed receipt compared to an expense voucher

In summary:

• Depending on the amount and continuity of your income, establishing a sole proprietorship may become a legal requirement
• You gain a more formal and corporate business identity
• You can deduct your business expenses in your annual Income Tax Return and reduce your overall tax burden

 

Self-Employed Receipt or Invoice?

 

This question also answers “What is a self-employed receipt?”. Once the difference between an invoice and a self-employed receipt is clearly understood, any confusion disappears.

If the work you perform is based on personal effort rather than capital, requires personal knowledge or expertise, and is carried out on your own behalf rather than for an employer, you are considered a self-employed professional. This is why questions such as “Should a doctor issue an invoice?” or “Do architects fall under self-employed professionals?” are frequently asked.

According to the legislation, examples of self-employed professionals include:
lawyers, doctors, dentists, veterinarians, architects, engineers, consultants, certified public accountants, sworn-in certified public accountants, advisors, painters, writers, composers, chemists, notaries, freelance teachers, artists, managers, screenwriters, directors, midwives, circumcisers, petition writers, tour guides, and healthcare officers, among others.

If you practice one of the professions listed above, you are required to issue a self-employed receipt. If your profession falls outside this scope, it is advisable to consult the tax office for clarification. You should also follow current regulations regarding tax exemptions for artists.

 

How is an invoice issued?

 

Although VAT rates vary depending on the type of goods or services, the basic structure is as follows:

• Net amount (excluding VAT): TRY 100
• VAT (20%): TRY 20
• Total amount: TRY 120

TRY 120 is collected from the customer, while the TRY 20 VAT is set aside to be declared and paid to the tax office at the end of the tax period.

If you wish to process a refund for a self-employed receipt, you may issue a new self-employed receipt by referencing the purchase invoice, clearly stating that it is issued for return purposes, and ensuring that the amount and VAT details match the original invoice.

 

Advantages and disadvantages of issuing an invoice compared to a self-employed receipt

 

In brief:

• VAT applies to both invoices and self-employed receipts
• Invoices do not include withholding tax, whereas self-employed receipts are subject to 20% withholding tax
• The withholding tax is paid by the client to the government on your behalf via a withholding tax return
• The withheld tax can be offset against the income tax calculated at year-end (often resulting in no additional tax payable)
• Since there is no withholding tax on invoices, there is no amount to be offset at year-end

At this point, you may wonder: “If self-employed receipts are so advantageous, why issue invoices at all?” There are two main reasons:

• The tax authority may not accept that your activity falls under self-employed services and may require you to issue invoices
• Businesses issuing invoices may set higher prices since they do not bear the 20% withholding tax cost