One of the frequently heard and wondered words in tax procedure, taxation processes and tax-related issues is accrual. So what is the accrual? What does accrual mean? Many people find it difficult to answer this question and cannot fully explain the word accrual. For this reason, in this article, we will answer the most common questions of people related to this subject. First of all, let’s start with what the word accrual means. accrual; means that the notified tax has now reached the stage of payment. In simple words, it is the finalization of the tax debt of the people who have a tax record.
For this reason, you can query your tax debts before they are accrued. Persons who are fully taxpayer for the tax debt must not have any objections about this tax and must agree to pay the taxes they are liable for. When a tax is accrued, the taxpayer is informed by various documents in accordance with the 1047 tax code that this transaction step has taken place. These documents are called accrual slips. These documents are issued by taxation authorities such as Vehicles Tax Office and Corporate Tax Office.
What is an Accrual Slip?
Various documents are sent to the taxpayer to indicate to the taxpayer the taxes that have reached the payment stage, that is, accrued. When we look at what these documents are, we see an accrual slip. What is a plug? What is an accrual slip? The accrual slip is the name given to the documents used to indicate to the taxpayer the taxes that have reached the payment stage, that is, the accrued taxes. This document is sent to the person who has tax debt and is obliged to pay it after the accrual process is realized. In the accrual slip, the characteristics of the taxes and the amounts to be paid are clearly indicated. The document in question is both an information and a payment order document. The date on the accrual slip is the last payment date of the debt. Interest accrual is applied to the debts paid after this date.
Especially large companies and businesses pay a large number of taxes in tax transactions. Taxes are very difficult to track. For this reason, the tax offices, where they are registered in the name of the companies, send the accrual slip to these businesses after the tax debts are accrued. The accrual receipt sent includes the fee and all information about the debt.
What is Tax Collection?
Firms or persons who are liable to pay tax, after their debts are officially declared, a new term appears before them, tax collection. When we look at what the collection of the said tax, it becomes clear that the payment of tax debt in accordance with the law is called tax collection. It is conveyed to the person responsible for paying the debt, including VAT. The debt does not end when the tax is collected in accordance with the tax procedure. There are main methods such as tax farming, tender management, collection method by representatives of the public, payment of tax by the taxpayer in trust method.
Collection of tax is an administrative action. With this administrative action, the taxation process ends. Collection of debt means paying the accrued tax debt in accordance with the law. How to collect tax;
- Tax collection is made in accordance with the Law No. 6183 on the Collection of Public Receivables.
- As a result of the collection, a receipt-caster receipt is given to the obligor.
- The payment and collection of tax debt takes place in the form of forced collection with or without the will of the taxpayer person/organization.
What Does It Mean to Accrue?
Accrual is only a step, not an administrative action. This is an important step in the taxation process. It means that the tax debt is in a state to be paid. With the accrual stage, the date and notification have been reached and the point where the tax must be paid has been reached. At this stage, the creditor tax administration requests the payment of the accrued tax debt from the taxpayer. The accrual process proceeds in two different ways, depending on the attitudes of the person responsible for paying the tax.
- Self-Accrual: If the 30-day tax filing period stipulated in the law on the tax debt that has been assessed and notified is passed without filing a lawsuit, the tax liability will be accrued automatically.
- Accrual upon the Decision of the Judicial Body: If a lawsuit is filed against the tax liability of the person liable to pay the tax, which has been assessed and notified, within the 30-day tax filing period stipulated in the law, the execution of the assessment process will automatically stop and the tax liability cannot be accrued.
What is the Communiqué of Tax?
What is tax filing? The subject of the aforementioned tax notification can be expressed as the taxpayer’s notification of the tax levied by the tax office in order to pay the debt. That is, the competent authorities notify the taxpayer or responsible person of the relevant debt in writing. We explained above that this written document is called an accrual slip. However, in taxes based on declaration, there is no need for tax notification since the taxpayer makes a declaration himself.
What is tax filing? What is tax notification? It is possible to answer these questions as an administrative act of tax notification. In this administrative act, the taxpayer is informed about the assessment process and the tax released on his behalf. It is the notification in writing of the points concerning taxation and expressing a judgment on this issue to the taxpayer or the addressee of the tax penalty by the competent authorities.
What Does It Mean to Accrue?
When we look at what accrual means with the dictionary meaning, it means to realize as a word. This concept means that a tax or liability is the amount of tax or liability that has been calculated and payable in detail and on the basis of valid documentation. Why accrue is necessary, in order for any receivables to become collectible or to come to the stage of paying a debt, first of all, the debt must be finalized, that is, accrued. In order to collect the tax debt, the accrual process must be made based on the taxpayer’s declaration to the tax office and in accordance with the legislation.The taxpayer must be notified of the debt with an accrual slip. After these steps, the accrual process takes place.
What is Collectible?
Collection is the payment of tax in accordance with the law. Collecting a debt is taking from the debtor the debt that must be paid in accordance with the law or encouraging the person to pay the debt. In order to collect the debt, the taxpayer is first notified of the debt with an accrual slip and time is given until the date in the document. The debt is collected from the person who owes the tax during this period. During the collection of the debt, what is the last date, hour and min, when the debt can be paid, what is the required number during debt collection, all this information is important.
What is Accrual in Accounting?
In accounting, the accounting period is generally accepted as 1 year. This 1 year need not be from 1 January to 31 December. Businesses have the right to determine a special accounting period for themselves by obtaining special permission from the Ministry of Finance. The duration should never exceed 365 days on specified special dates. Accrual is taken into account in the determination of commercial and agricultural income within the
accounting period.
To explain briefly, the accrual principle is that income and expenses are considered to be realized as soon as they are received or made and they are included in the financial statements of the period to which they are concerned. Expenses and revenues should be determined precisely on an accrual basis. In other words, accrual is not essential if income and expenses are partially or fully collected or paid.
What is Invoice? What does it mean?
What is Invoice? It is a commercial agreement invoice that describes the quantity, type, price, type and other characteristics of the goods prepared by the seller after a commercial activity. The question of what is Invoice has been asked a lot with the development of import and export. Invoice can also be referred to as an offer, but its real meaning is the document used to prove the sale of goods in international trade. Since the document is an invoice, it is official and valid. The answer to the question of what is Invoice is not only product-based, but also tells that every business that has a commercial concern offers its products or services to the buyer in the form of a list. It is also an official document in this direction and its validity is also accepted by the trade authorities. With this document, the receiving business is informed about the payment obligation. The seller company also indicates to the buyer the amount to be paid legally with the commercial invoice it has. With the commercial invoicing process, the companies make the payment agreement between them. Certain templates may be used when preparing this agreement.
What does Commercial Invoice mean?
What is a commercial invoice? Our answer is similar to the question What is an invoice? Its translation is translated as “commercial invoice” or “commercial contract”. Every business with commercial concerns should use Commercial Invoice for its buyer or for every outsource that trades between. These commercial invoices provide regular payment and proof of commercial transactions. It explains the legal problems. In international trade, this document, in which we specify the freight, quantity, product shape and volume, is used as a timely payment request document and invoice fee document. Commercial Invoice can be prepared in the form of an offer form by importer and exporter individuals or companies that are frequently used in maritime transportation. Unlike the bill of lading, this commercial contract does not take ownership of the goods.
It is not used in commercial activities within the borders of Turkey because the commercial contract document is prepared in English. The contract or invoice language valid in domestic commercial transactions in Turkey must be Turkish. One of the reasons why this document has the feature of an offer is that it specifies the terms of the sale or purchase transaction between companies engaged in commercial activities. It reflects the mutual responsibilities of companies such as payment methods.
How to Prepare Invoice?
After the question of what is Invoice, the question of how it is prepared is also wondered. The answer is important between trading businesses to legally tell both parties about payment requests, sales tracking, inventory records, forecasting sales, business expenses and incomes for tax filing. To prepare the commercial invoice, you need to create a professional document. You can make the commercial invoice from the applications that provide ready-made templates, and in your international sales, you must make it in the language of the country or in English so that it is a legally meaningful document for the other party.
Stages of preparing the document;
- Creating an invoice header with business information
- Add the contact information of the person or company you are doing business with
- Add invoice information (important information such as invoice number, date, etc.)
- Specify your payment terms (you can briefly explain using Incoterms 2020, explain between which dates you expect payment)
- Make a detailed list of your services, this will increase the transparency of trading companies and avoid disputes this information; The services offered should include information such as date, number, volume and subtotal.
- You must clearly and clearly write the tax rates you have added to the document.
What is Original Invoice?
The answer to the question of what is Original Invoice is the commercial invoice sent to the buyer, taking into account the foreign exchange transfer and commitment statements prepared by the exporter at the customs stage in commercial transactions. Since it has a commercial nature, it carries a legal nature and is processed into the accounts of companies by accounting. The contract explains the sales and payment methods of commercial enterprises according to Incoterms for both parties. Thus, it is the invoice that characterizes the document sales transactions in international transportation and logistics activities. In addition, the original invoice translation is translated into Turkish as the original invoice.
This invoice is issued in English. Thus, it becomes a legal document that documents the sales contract. The original invoice is required to avoid customs clearance of export and import transactions and calculation of taxes.
What is the Invoice number?
Commercial invoices must be unique for each transaction and must not be confused with other invoices. That’s why invoice no is used. The fact that each invoice has a different number will be a part of the solution both for the business and for the institutions and individuals who examine it, while explaining the confusions that may occur in the future. This number is as important as the payment method, method, amount and even where it is sent. If not specified, transactions may be confused by the accounting examiner of commercial invoices and financial difficulties may arise. You should make sure that you use a unique number when writing the invoice number. You can use numbers that are easy to understand for both parties. Thus, it easily completes the buyer process at the customs.
What programs can Commercial Invoice be created using?
To prepare your commercial invoice, you can prepare it from Word, Excel or programs that you think are more professional. Commercial Invoice (CI) should be prepared in English or if there is a special language preferred by the country you do foreign trade, it should be prepared in German or French. Since the company that you are doing business with will use this document when receiving the goods from the customs, this document should be prepared meticulously with the invoice number.
What does Proforma Invoice mean?
By definition, Proforma Invoice is an invoice document used in foreign trade. It is the proposal invoice of international commercial contracts. Logistics activities do not start with this invoice and no payment is expected from the company to be cooperated with. This invoice is the written explanation of the expectations such as payment of the offer, service and goods, mode of transportation, amount, amount, type, tax. You are there to be aware of the conditions in both companies that will trade. The language of the document with the company you do business with in foreign trade should be English, but some countries may expect this document in German or French. You can prepare the document using programs such as Excel, Word. After that, you can start your transactions as soon as possible after you receive a response to your offer.
