E-commerce in Turkey means offering products or services for sale through a website, a mobile application, social media channels or online marketplaces. A successful and compliant e-commerce operation is not, however, limited to setting up a website or opening a store on a marketplace.
Company formation, tax registration, notification to the electronic commerce information system, payment and invoicing systems, consumer legislation, protection of personal data, and shipping and returns processes must all be planned together.
How is e-commerce started in Turkey?
Entrepreneurs wishing to start e-commerce in Turkey generally need to follow the steps below:
- Determining the product or service to be sold
- Selecting the appropriate company type
- Completing the company and tax registrations
- Setting up the website or marketplace infrastructure
- Registering with the electronic commerce information system where required
- Establishing the payment and invoicing systems
- Preparing the distance sales, personal data and cookie texts
- Planning the shipping, delivery, cancellation and return processes
- Complying with the rules on commercial electronic messages
Because additional permits, licences or Ministry registrations may be required depending on the scope of the activity, it is important to assess sector-specific obligations separately before sales begin.
Is it compulsory to set up a company for e-commerce?
Where commercial income will be earned on a regular basis from e-commerce activity in Turkey, a tax registration must be created. Depending on the size of the activity, the ownership structure and the investment plan, a sole proprietorship, a limited liability company or a joint stock company may be set up.
Setting up a sole proprietorship
For sole proprietorships, the commencement of business notification may be made to the tax office or through the digital tax office. The formalities may also be followed through a certified public accountant.
Depending on the nature of the activity, registration with the chamber of tradesmen and craftsmen or with the chamber of commerce may be required. Where the activity will be carried out in the capacity of a merchant, the necessary trade registry and central registry system formalities must also be completed.
Setting up a limited or joint stock company
Formation applications for limited and joint stock companies are prepared through the central registry system and registered with the relevant Trade Registry Directorate. After registration, the tax office formalities, the statutory books, the signature authorities and the other post-formation obligations are completed.
When setting up an e-commerce company, it is necessary to take into account not only the formation costs but also taxation, the ownership structure, the possibility of raising investment and share transfers that may be made in the future.
Which e-commerce model should be chosen?
E-commerce activity in Turkey may be carried out under different business models:
- B2C: sales directly from the business to the consumer
- B2B: sales of products or services between businesses
- C2C: sales between individuals through a platform
- D2C: the manufacturer reaching the consumer directly, without an intermediary
- B2G: businesses selling to public institutions
The company type, the contracts, the invoicing method and the obligations under consumer legislation may vary according to the model chosen.
How is the e-commerce infrastructure set up?
Businesses may carry out their e-commerce activities in Turkey:
- Through their own website
- Through marketplaces such as Trendyol and Hepsiburada
- Through a mobile application
- By using more than one sales channel together
A business setting up its own e-commerce site needs to plan the domain name, hosting service, security certificate, payment infrastructure, stock management, accounting integration and shipping connections. It is important that the system used is fast, mobile-compatible, backed up regularly and equipped with security standards that protect customer information.
Who needs to register with the electronic commerce information system?
Businesses carrying out e-commerce activity through their own website or mobile application must register, before starting the activity, with the Electronic Commerce Information System maintained by the Ministry of Trade.
On registration, the following are generally entered into the system:
- Central registry system or tradesmen registry system details
- Tax identification details
- Website or mobile application details
- Information on the activity and the payment methods
The registration obligation may differ for service providers that sell only through an electronic commerce marketplace resident in Turkey. That said, the obligations of businesses that also take orders through their own website should be assessed separately. The purpose of the system is to bring businesses engaged in e-commerce onto the record and to make them reachable.
What information must appear on an e-commerce site?
The business must be easily reachable on the e-commerce site. Depending on the nature of the activity, the following information should be included:
Product descriptions must be accurate, discounts must reflect reality, and the total amount to be collected from the consumer must be shown clearly before the order is placed.
Which legal texts must be prepared?
On an e-commerce site selling to consumers, the following texts may need to be prepared depending on the scope of the activity:
The consumer must be informed about the characteristics of the product, the total sale price, delivery, the right of withdrawal and the return conditions before the order is completed. In distance sales the consumer generally has a right of withdrawal within 14 days, apart from exempt products and services.
How is the payment infrastructure set up?
Credit card and other electronic payment transactions must be carried out through authorised banks or payment institutions. Depending on the business model, the following may be used:
- Virtual point of sale
- Credit or debit card
- Bank transfer
- Digital payment solutions
- Marketplace payment systems
A secure connection, fraud checks and, where appropriate, security methods such as 3D Secure should be used on the payment page.
Electronic invoice and electronic archive invoice obligations
E-commerce sales in Turkey must be documented in accordance with the legislation. Depending on the tax status of the business and the relevant thresholds, a transition to the electronic invoice or electronic archive invoice application may be required.
Integrating the invoicing infrastructure with the e-commerce site, the marketplace, the stock programme and the accounting system helps to prevent discrepancies between order, collection and invoice records.
Because electronic document obligations and transition thresholds may change, the position of the business should be checked separately for each accounting period.
Personal data and cookie obligations
E-commerce businesses should collect from customers only the personal data necessary to carry out the activity. The personal data information notice should explain:
- The purposes for which the data are processed
- The legal grounds for processing
- To whom the data may be transferred
- The retention processes
- The rights of the data subject
For non-essential cookies used for advertising, analytics and targeting purposes, the necessary consent mechanism must be established, and users must be given the option to accept or refuse cookies.
Commercial electronic messages and message management system registration
Where advertising, campaign or promotional text messages and e-mails will be sent to customers, the legislation on commercial electronic messages must be complied with. Where required, registrations with the Message Management System must be completed and the prior consent of the recipient obtained.
Customers must also be given the means to refuse commercial messages easily and free of charge.
Shipping, delivery and return processes
The processes of preparing, packing, dispatching and delivering orders to the customer must be planned in advance. The e-commerce site should clearly state:
- The estimated delivery time
- The shipping charge
- The return address
- The method of applying for a return
- The return shipping conditions
- The refund process
Integrating the shipping and stock systems with the e-commerce infrastructure helps to reduce operational errors and customer complaints.
Frequently asked questions
Is it compulsory to set up a company for e-commerce in Turkey?
Where commercial income will be earned on a regular basis from e-commerce activity, a tax registration must be created. Depending on the size of the activity, the ownership structure and the investment plan, a sole proprietorship, a limited liability company or a joint stock company may be set up.
Who must register with the electronic commerce information system?
Businesses carrying out e-commerce activity through their own website or mobile application must register with the system before starting the activity. The obligation may differ for service providers that sell only through marketplaces resident in Turkey.
How many days is the consumer’s right of withdrawal in distance sales?
Apart from exempt products and services, the consumer generally has a right of withdrawal within 14 days in distance sales.
Is the electronic invoice compulsory on e-commerce sales?
Depending on the tax status of the business and the relevant thresholds, a transition to the electronic invoice or electronic archive invoice application may be required. Because the thresholds may change, the position of the business should be checked separately for each accounting period.
What is required in order to send campaign text messages or e-mails to customers?
The legislation on commercial electronic messages must be complied with, the Message Management System registrations completed where required, and the prior consent of the recipient obtained. The recipient must also be given the means to refuse the message easily and free of charge.
How does Ozbek CPA support your e-commerce processes in Turkey?
When starting e-commerce activity in Turkey, the company, tax, accounting and statutory notification processes need to be planned as a whole.
We support businesses in the following areas:
- Formation of a sole proprietorship, a limited liability company or a joint stock company
- Tax registration and post-formation formalities
- Following the registration process with the electronic commerce information system
- Electronic invoice and electronic archive invoice advisory
- Monthly accounting and tax returns
- Accounting for marketplace and payment records
- Tax assessment of domestic and cross-border e-commerce transactions
- Financial compliance advisory on e-commerce activities
To set up an e-commerce company in Turkey, or to review the tax and accounting obligations of your existing sales activity, contact us.
