Invoice Cancellation and Objection Process

When there was an error with a paper invoice, the solution was simple: you would tear up both copies and issue a new one.

There is no such thing with an e-invoice. As soon as the document is sent, it drops into the Revenue Administration's system and stays there. What you can do is not delete the document, but change its status.

First, determine the document type

The process changes completely depending on whether the document you issued is an e-invoice or an e-archive invoice.

An e-invoice is a document delivered to the other party within the system, where the recipient is also an e-invoice taxpayer. The recipient can respond through the system.

An e-archive invoice is issued to those who are not e-invoice taxpayers. The recipient does not have a response mechanism within the system; the document is delivered via email or as a printout.

We covered the difference between the two in detail in the differences between e-invoice and e-archive invoice article.

In e-invoices: rejection and cancellation requests

In the commercial invoice scenario, the recipient can reject the invoice through the system. When a rejection response is received, the invoice becomes void, and the seller can reissue it.

In the basic invoice scenario, however, there is no in-system rejection response. In this case, the seller creates a cancellation request via the Revenue Administration's cancellation-objection portal; the recipient approves or rejects this request.

The critical distinction here is: a cancellation request is not a unilateral transaction. If the other party does not approve, the invoice remains valid. We explained how scenario types work in the e-invoice scenario types article.

The 8-day rule

The Turkish Commercial Code grants the receiving party a period of 8 days from the receipt of the document to object to its content. If no objection is made within this period, the invoice content is deemed accepted.

Since objections cannot be made through the system for e-archive invoices, they are made via external methods: a notary, registered mail with return receipt requested, telegram, or KEP (Registered Electronic Mail) with a secure electronic signature. The objection made must also be reported electronically to the Revenue Administration.

In other words, saying "I called the customer, they didn't accept it" is not considered a legal objection. When a dispute escalates, it turns out there is no documentable objection.

Deadlines and procedures can be updated by legislation; if there is a disputed amount, consult your financial advisor.

If the deadline has passed: return invoice

If the cancellation and objection period has been missed or the recipient has not approved the cancellation, the way to reverse the transaction is a return invoice. This time, the document is issued by the recipient, and the goods/services are returned to the seller.

In practice, this is the most frequently used solution. We explained step-by-step how to issue one in the how to issue a return invoice article.

If the recipient is not a tax taxpayer, they cannot issue a return invoice; in this case, an expense note comes into play. The expense note article covers this scenario.

Preventing errors from the start

The best version of the cancellation process is never needing it. The three most common errors are:

Wrong current account selection. Choosing the wrong one between two similarly named customers. Keep your current accounts distinguishable by tax ID.

Incorrect VAT rate. If the rate is defined in the product card, this error is largely eliminated. See the VAT rate selection article.

Hasty sending. Checking the amount and the recipient in one go before clicking send saves hours of work later.

Frequently asked questions

What happens if the recipient does not approve the cancellation request?

The invoice remains valid. The remaining path is a return invoice or an agreement between the parties.

Can I cancel an invoice I issued on the same day?

If the document has reached the Revenue Administration, the cancellation process still applies. The difference between "I haven't sent it yet" and "I sent it" is decisive here.

Does a canceled invoice affect the VAT declaration?

Yes. Clarify with your financial advisor which period the cancellation or return transaction will be reflected in; period discrepancies can disrupt the declaration.

Does the number remain vacant?

The number of the canceled document cannot be reused. It is normal to see a gap in the series tracking.

In summary: there is no undoing in e-invoices, only status changing. Knowing the deadlines saves a much bigger job from scratch later on.

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