Invoices, receipts and documents: why everything needs a document
Spending without a document is, for accounting purposes, as if it never happened. In this lesson we learn the difference between an invoice and a receipt, why an expense without a document cannot be recorded, and how many years you need to keep your documents.
A document is a paper showing that a transaction took place: an invoice, a retail sales receipt, a cash register receipt and so on. You cannot record spending without a document as an expense; if you do, it will not be accepted in a tax inspection. You must keep your books and documents for at least 5 years from the start of the year following the year they relate to; for some documents the period is 10 years.
Mehmet Usta the tailor and his drawer
The rules described in this lesson are those of Turkish law.
Mehmet Usta runs a tailor's shop. Last month he bought 4,000 lira worth of fabric. The fabric seller did not ask "Shall I issue an invoice?", and Mehmet Usta did not ask for one either. At the end of the month he told his mali müşavir (certified public accountant): "I bought 4,000 lira of fabric, record it as an expense."
The accountant asked calmly: "Where is the document?"
There was no document. Mehmet Usta really had bought the fabric, and he really had paid for it. But there was no paper to prove it. In the world of accounting, a transaction without paper is treated as if it never happened.
What is a document?
A document is an official paper showing that a purchase or sale really took place. Accounting is a matter of evidence: behind every line in the books there is a document. The books are nothing more than an orderly summary of the papers in the drawer.
These are the documents you will come across most often:
| Document | When |
|---|---|
| Invoice (fatura) | In sales from one business to another; also when the customer asks for one or the amount exceeds the limit set by law |
| Retail sales receipt / cash register receipt (perakende satış fişi / yazar kasa fişi) | In over-the-counter sales to consumers, such as at a corner shop, a supermarket or a café |
| Expense voucher (gider pusulası) | You issue it yourself when you buy from, or have work done by, a tradesperson who is exempt from tax (e.g. someone making handicrafts at home, a street vendor). If someone who is a taxpayer does not issue an invoice, an expense voucher does not take its place. For purchases from farmers there is a separate document (producer receipt, müstahsil makbuzu) |
| Bank receipt (banka dekontu) | Proves the payment; but on its own it does not replace an invoice |
An invoice and a receipt are not the same thing
Both look like proof of purchase. The difference is this:
- An invoice states who sold to whom: the names and tax numbers of the seller and the buyer, the goods or service, the amount and the VAT. It is the main document for a transaction between two businesses.
- A receipt is the paper for a consumer sale that goes over the counter. It does not show the buyer's name.
Because Mehmet Usta's purchase from the fabric seller was between two businesses, he should have asked for an invoice. A receipt is not enough for this. The general rule: to deduct the VAT (KDV, value added tax) you paid on a purchase, that is, to subtract it from the VAT you collected from customers on your sales, that VAT must be shown separately on an invoice (VAT Law, Katma Değer Vergisi Kanunu, art. 29 and 34). For some small expenses, the VAT on a receipt can also be deducted; ask your accountant which ones. This deduction is only for VAT payers: if you are taxed under the simplified method (basit usul), you do not file a VAT return, and you cannot deduct the VAT you paid on purchases either.
Today invoices mostly arrive electronically. An e-Archive invoice (e-Arşiv fatura) is an electronic invoice issued to buyers who are not part of the e-Invoice (e-Fatura) system. It arrives on your phone or by email; no paper is needed. But it still counts as an invoice and must be kept. When buying, give the business's tax number (for a sole proprietorship, your Turkish ID number, T.C. kimlik numarası) so that the invoice is issued in the name of the business.
Issuing paper invoices is now very limited. The rule for 2026 is this: companies and those keeping books on the balance-sheet basis (bilanço usulü) issue all their invoices electronically. Those under the simplified method and those keeping a business book (işletme defteri) may issue invoices of up to 3,000 TL including taxes on paper until 31 December 2026; from 1 January 2027 paper invoices end for them too (General Communiqué No. 509 on the Tax Procedure Law, 509 Sıra No'lu VUK Genel Tebliği, as amended by No. 589). Ask your accountant which group you are in. The details are in the lesson e-Invoice or e-Archive? (in Turkish).
When do you issue the invoice?
If you are the seller issuing the invoice: by law, the invoice must be issued within 7 days at the latest from the day you delivered the goods or performed the service (Tax Procedure Law, Vergi Usul Kanunu, VUK, art. 231/5). If this period passes, the invoice is treated by law as never having been issued, and there is a penalty. Do not leave it to the end of the month; issue it on the day of delivery.
Forgetting to issue an invoice, or not issuing one at all because "the customer didn't ask for it", upsets nobody at first. But one day a gap shows up in your records, and there is a penalty for it.
No document, no expense
Recording an expense means deducting the money you spent from your income when you calculate your profit; tax is calculated on this profit. The state accepts this only for spending that can be proven. Because Mehmet Usta's 4,000 lira had no paper behind it, it could not be recorded as an expense. So his profit came out 4,000 lira higher, and tax was calculated on that profit too. Mehmet Usta paid the money and paid the tax on it as well. (If you are under the simplified method, your earnings may be exempt from income tax under certain conditions, so the result may be different; but the document rule applies to you too.)
Which spending counts as business-related is a separate topic: see the article Which expenses can be recorded? (in Turkish). For this lesson, just remember this: even if it is business-related, without a document it cannot be recorded.
How long do you keep documents?
Everyone who is required to keep books must keep their books and the documents they received or issued for 5 years from the start of the calendar year following the year they relate to (VUK art. 253).
Example: you keep an invoice from 2026 for 5 years starting from 1 January 2027, that is, until the end of 2031. For some documents the period is longer: SGK (Social Security Institution) documents relating to employees (Law No. 5510, art. 86), and the books and documents of businesses that count as merchants (tacir) under the Turkish Commercial Code (Türk Ticaret Kanunu, TTK), including all companies (TTK art. 82), are kept for 10 years. In situations such as losses carried over from previous years, the period may also be longer. If you are not sure, keeping everything for 10 years is the safest way.
Think about this too: if there is an inspection
One day the tax office (vergi dairesi) may say, "Let's see last year's expenses." On a day like that, Mehmet Usta has two options. Either he opens his folder and shows the papers one by one, or he says, "I had them, but I can't find them." The first is ten minutes' work; the second is a problem that can drag on for months.
Keeping documents in order looks boring, but it is your insurance. Spending with paper defends itself. Spending without paper is something you have to defend yourself.
A practical routine
- With every purchase, ask "Can I have an invoice?" and give the business name and tax number. An invoice issued in someone else's name is not your expense.
- Receipts fade over time (thermal paper). Take a photo with your phone as soon as you get one. The photo does not replace the original; keep the paper original too.
- Put your documents in a separate envelope or folder for each month. Hand them to your accountant in one go at the end of the month.
Do this this week
This week, ask for the invoice or receipt for every purchase you make and put it in a folder the same day. On Friday, count the documents in the folder. Check whether any spending has no document; if so, note down why.
Common mistakes
- Saying "The fabric seller didn't give me an invoice, I'll manage with a receipt." In purchases between businesses the main document is the invoice; you also need an invoice to deduct the VAT you paid on the purchase.
- Leaving the receipt in your bag or pocket. Thermal paper fades within a few months. Take a photo, and keep the original in its envelope too.
- Having the invoice made out in the name of your spouse or an acquaintance instead of your business. An invoice that is not in the name of your own business does not count as your expense; give your tax number when you buy.
Sources
- Tax Procedure Law (Vergi Usul Kanunu), Law No. 213 (art. 227-232 document rules, art. 253 retention)
- TÜRMOB, retention periods for books and documents under VUK
- VAT Law (KDV Kanunu), Law No. 3065 (art. 29 deduction, art. 34 conditions for deduction, art. 17/4-a simplified method)
- TÜRMOB, VUK General Communiqué No. 589: paper invoice and e-Archive dates
- Alomaliye, VUK art. 231/5 invoice issuing period (7 days)
Translated from the Turkish lesson. Last checked against Turkish rules: 7 October 2026. Not yet reviewed by a licensed accountant. This is general information about Turkish rules; for your own situation ask a licensed accountant (mali müşavir).