E-invoice use in e-commerce has various advantages. The mandatory e-invoicing for e-commerce firms depends on the sector. E-invoice and e-archive are based on the annual revenue of two years ago. Well, how do you use e-invoice in e-commerce? What are the advantages of e-invoice? Is the transition to e-invoice mandatory for e-commerce firms?
What Is E-Invoice?
E-invoice is the part of digital transformation depending on technological developments. It is a part of the e-transformation process in public institutions. This is transferring physical invoices and invoicing process to digital space. With e-invoice, it is possible to invoice in the digital environment, send to customer and archive the invoice. E-invoice has the same legal standard as a printed invoice. Since it is prepared in the electronic environment, paper invoice waste and delivery costs are prevented. Due to its advantages, various e-commerce firms have voluntarily selected e-invoice and e-archive.
E-Invoice Use in E-Commerce
Invoicing has certain challenges for firms. Invoicing online orders and sending these orders have different processes than traditional shopping invoices. To use invoice in e-commerce, customer information must be defined for orders. Invoice template must be created, information must be stored and printed on the paper invoice. Invoices are attached to order package and send with cargo. The customer might ask the order address or a different address for the invoice.
There are certain problems faced by e-commerce firms in the invoicing process. For example, when the printed invoice is delivered to a different address than order address, the invoice might not be delivered or delivered to an incorrect address. In this case, the entire process is started over, the newly printed invoice is prepared and send to the customer address with cargo. All the problems meantime loss and additional cost.
E-invoice in e-commerce is a practical solution for e-commerce firms. E-invoice can offer the final solution without experiencing times loss or halting operational processes. E-commerce firms integrated to e-invoice system can make their invoicing process faster. The invoice can be sent on the electronic environment without a printed invoice.
Advantages of E-Invoice in E-Commerce
E-invoice which has an important contribution to e-commerce start-ups accelerates operational processes. It consolidates the convenience of e-commerce. There are time and space independent invoicing option.
The basic advantages of e-invoice in e-commerce are as follows:
- There is no need to prepare, print, approve the printed invoice.
- There is no need to send the invoice with cargo or shipment. But the printed invoice can be sent with cargo if demanded.
- It is possible to send an e-invoice to the customer in the electronic space with e-mail. Additionally, e-invoice can be printed and send on A4 paper.
- There is no invoice delivery problem to the customer, the invoice sending can be proved easily.
- Since there is no need for printing on paper, the cost per invoice decreases.
- Accountants can easily and instantly send.
- It is easier to cancel, return, re-issue the e-invoice.
- It is easy to archive and finds e-invoice, it does not cover a physical space in archiving and automatic archiving is possible.
- It is environmentally friendly since the paper is not used. This is an important stage for the e-transformation process of firms.
E-Invoice Necessity in E-Commerce
While e-invoice is mandatory in certain conditions in e-commerce, the benefits of the e-invoice system lead firms to voluntarily transit to e-invoice. Invoicing and invoice follow-up is not easy for traditional invoice systems of e-commerce firms. They need to allocate time for invoicing. Preparing the order invoices, saving on the accounting program, printing and sending with cargo takes time. If the customer does not receive the invoice, the process is repeated and the cost increases. E-invoice and e-archive systems make these operations practical. E-invoice in e-commerce makes invoice follow-up and delivery easier. E-commerce firms transiting to e-invoice can invoice online marketplace orders with e-invoice integrators.
E-invoice necessity in e-commerce is directly proportional to the revenue of the e-invoice firm. The transition of the firms that sell online which are called e-commerce firms to e-invoice is different for each sector. E-invoice and e-archive are based on the annual revenue of two years ago. For example, e-invoice transition necessity in January 2021 is determined according to 2018 revenue. Firms that have revenue below 5 million TL two years ago can adopt e-invoice and e-archive voluntarily.
Firms that have revenue more than 5 million TL must transit to e-invoice and e-archive. These firms must transit to e-invoice on 01 July 2020 at the latest. Additionally, firms that must have e-invoice must transit to the e-archive system starting from 01 January 2020. It is not possible to transit to the e-archive system without e-invoice. There are certain requirements and documents necessary for the e-invoice application process.