What Is a Commercial e-Invoice? How Can It Be Cancelled?
What Is a Commercial e-Invoice? How Can It Be Cancelled?
A commercial e-invoice is one of the most important innovations brought by digitalization to business-to-business transactions. However, there may be situations where an issued invoice needs to be cancelled. When an invoice contains incorrect information, a transaction is cancelled, or the buyer rejects the document, the question “How can a commercial e-invoice be cancelled?” comes into focus.
In this article, we explain what a commercial e-invoice is, what it is used for, how the rejection and cancellation processes work, and what steps need to be followed. If you are looking for clear and practical information about commercial e-invoice cancellation, you can find all the essential details below. Enjoy reading!
What Does a Commercial e-Invoice Mean?
A commercial e-invoice is an electronic invoice issued between businesses for the sale of goods or services. In broader terms, a commercial e-invoice is a digital document that officially records a transaction between the seller and the buyer and enables both parties to reach mutual agreement regarding the transaction.
Commercial e-invoices issued between users registered in the e-Invoice system allow business transactions to be recorded electronically. They also give both the buyer and seller the opportunity to express their position regarding the invoice. The invoice becomes valid when accepted by the buyer, while a rejection makes the relevant transaction invalid.
Key Features of Commercial e-Invoices
One of the main features that distinguishes a commercial e-invoice from a standard e-invoice is its approval mechanism, which allows both the buyer and seller to mutually agree on the transaction. This type of invoice can only be issued between users registered in the e-Invoice system. Commercial e-invoices are particularly common in B2B transactions and provide an official record of business relationships between the parties.
One of the most important characteristics of a commercial e-invoice is that the buyer can respond with either “Accept” or “Reject” after receiving the invoice. As a result, not only the invoicing process but also the mutual approval process can be managed digitally. This helps reduce errors and allows transactions to proceed in a more transparent and controlled manner.
Commercial e-invoices can be issued through the Revenue Administration (GIB) e-Invoice Portal, private integrator systems, or ERP and accounting software.
The Acceptance Process
Once a commercial e-invoice has been prepared, it is electronically sent to the buyer. However, the invoice becomes officially valid when the buyer responds with an “Accept” notification through the system. This can be completed easily through the e-Invoice application.
If the buyer does not reject the invoice within 8 days, the invoice is considered to have been implicitly accepted. This period is provided to give the buyer sufficient time to review the invoice and make a decision regarding the transaction.
Once accepted and legally valid, the invoice becomes part of the company’s accounting and tax processes. After acceptance, the invoice cannot be directly cancelled; if necessary, a return invoice must be issued.
Invoice Rejection and Objection
If the buyer identifies an error in the commercial e-invoice or does not wish to approve the transaction for any reason, they have the right to reject the invoice. The rejection must be carried out through the same electronic system within 8 days.
If the rejection is not completed within the specified period, the invoice is considered accepted and the standard rejection/cancellation process comes to an end. Since rejection invalidates the invoice, the seller may issue a new invoice based on the rejected transaction.
To ensure that the process proceeds smoothly, it is important for the buyer and seller to remain in communication. Especially for high-value transactions, informing the other party before rejecting an invoice can contribute to maintaining trust and effective communication between businesses.
What Is a Commercial e-Invoice Used For?
A commercial e-invoice is more than just a document proving a sale. It also serves as a reliable financial and legal record of business transactions.
Issuing invoices electronically reduces paper consumption while making business processes faster. In addition, details such as the invoice issue date, rejection process, and cancellation procedures can be easily monitored through the electronic system.
Commercial e-invoices are particularly useful for businesses with high transaction volumes. They simplify archiving, reporting, and auditing processes while providing greater transparency in business relationships through their mutual approval mechanism.
Who Can Issue Commercial e-Invoices?
Businesses designated as e-Invoice taxpayers by the Turkish Revenue Administration (GIB) can use commercial e-invoices. Limited liability companies, joint-stock companies, sole proprietorships, and other tax-registered businesses can issue invoices as commercial e-invoices after transitioning to the e-Invoice system.
Commercial e-invoices are particularly common in B2B, or business-to-business, transactions. To use this system, both the seller and the buyer must be registered with the e-Invoice system.
How Is a Commercial e-Invoice Issued?
Issuing a commercial e-invoice is an important process for businesses registered in the e-Invoice system. Electronic invoicing provides significant advantages by helping businesses digitalize their transactions and monitor invoices more efficiently.
Invoices can be created through the GIB e-Invoice Portal, private integrators, or ERP and accounting software. The commercial e-invoice process can generally be divided into three main stages.
Choosing an Integrator and Applying
The first step in issuing a commercial e-invoice is selecting an e-Invoice integrator. Businesses can join the e-Invoice system through private integrators authorized by the GIB.
While some businesses prefer to establish direct integration through their own software, SMEs and smaller businesses often choose private integrator services because they offer a more practical and user-friendly solution.
A financial seal or electronic signature is required during the application process. Using the necessary documents, an application is submitted to the GIB system through the selected integrator. Once the application is completed, access to the system is provided.
Entering Invoice Information
After the integration process is completed, information such as customer details, goods or service descriptions, VAT rates, and the total amount must be entered into the system to create an invoice.
The entered information is transferred to the standard invoice format available in the system. Since commercial e-invoices include a mutual approval mechanism, the invoice type must be selected as “Commercial.” This allows the buyer to accept or reject the invoice.
Sending and Tracking the Invoice
Once all invoice information has been completed, the document is electronically sent to the buyer. The buyer can log into the system to accept the invoice or reject it by providing a reason.
The status of submitted invoices can also be monitored through the system. This makes invoice tracking much faster and more transparent than manual processes. After submission, the e-invoice is stored in the GIB archive and can be accessed whenever necessary.
Now that we have explained how a commercial e-invoice is issued, let’s take a look at how the cancellation process works.
How Is a Commercial e-Invoice Cancelled?
Since commercial e-invoices are processed based on mutual agreement, their cancellation process involves certain rules that differ from other types of invoices.
The answer to “Can a commercial e-invoice be cancelled?” is yes, but the cancellation must be carried out in accordance with specific requirements.
A commercial e-invoice cannot be cancelled directly through the GIB e-Invoice Cancellation Portal. Instead, the buyer who received the invoice must reject it through the electronic system.
If the buyer does not accept the information on the invoice or identifies an issue with the transaction, they must reject the invoice through the system within 8 days. If no rejection is made within this period, the invoice is considered implicitly accepted and cannot be cancelled through the standard commercial e-invoice rejection process.
For this reason, communication between the parties after the invoice has been issued is particularly important. Maintaining communication helps both parties identify potential errors quickly and complete the reconciliation and cancellation processes on time.
How Many Days Is the Commercial e-Invoice Cancellation and Rejection Period?
One of the most important points to consider when dealing with commercial e-invoices is the rejection period. The buyer must submit a “Reject” response through the system within 8 days from the invoice issue date.
This eight-day period gives the buyer the opportunity to review the invoice and formally communicate any objections. If no action is taken within this period, the invoice is considered accepted and the standard rejection/cancellation period expires.
After this period has passed, cancelling the invoice may require different official procedures and supporting documentation.
Is a Financial Seal Required to Cancel a Commercial e-Invoice?
A financial seal is an important tool for ensuring the security and official validity of commercial e-invoice transactions. When commercial e-invoice or general commercial invoice procedures are carried out through the GIB Portal or private integrator systems, a financial seal or electronic signature is required.
The financial seal helps verify that the person carrying out the transaction is authorized to act on behalf of the company and supports the official validity of the transaction. For cancellation procedures conducted through a notary, petitions prepared using a financial seal may also be used.
Differences Between Basic and Commercial e-Invoices
Although basic and commercial e-invoices serve similar purposes, they differ significantly in terms of how they operate. A commercial e-invoice allows the buyer to accept or reject the invoice, whereas a basic e-invoice is directly delivered to the recipient.
The main differences between these two invoice types are as follows:
- Purpose of use: Commercial e-invoices are used for transactions involving the sale of goods or services where mutual agreement between the buyer and seller is required. Basic e-invoices are preferred for standard transactions where buyer approval is not required.
- Approval mechanism: A commercial e-invoice requires the buyer to review and either accept or reject the invoice. A basic e-invoice does not have such an approval process and is considered accepted directly.
- Return and objection process: Commercial e-invoices can be rejected within the specified period, and the rejection can be officially recorded in the system. Basic e-invoices do not have the same direct rejection mechanism.
- Risk management: Commercial e-invoices provide a more controlled transaction process and are therefore particularly suitable for high-value transactions. Although basic e-invoices offer faster delivery, resolving disputes that may arise later can involve more complex procedures.
Advantages of Using Commercial e-Invoices
One of the biggest advantages of commercial e-invoices is that they provide a more controlled and transparent invoicing process by involving the buyer in the approval stage. This helps reduce the possibility of issuing incorrect invoices while also accelerating reconciliation between businesses.
The main benefits of using commercial e-invoices include:
- Mutual reconciliation: The buyer can review the invoice and either accept it through the system or raise an objection.
- More effective communication: Since acceptance and rejection transactions are electronically recorded, potential disputes that may arise later can be prevented or resolved more easily.
- Legal security: Acceptance or rejection of an invoice is recorded within the system and may serve as supporting evidence in legal proceedings when necessary.
- Automated workflows: Commercial e-invoice systems can be integrated with ERP and accounting software, allowing various business processes to be automated.
- Simplified financial planning: The approval mechanism makes it easier to predict collections and manage financial planning more effectively.
