What is e-SMM? How to Use It? How to Issue and Query It?

If you are a self-employed professional, you must issue a self-employment receipt (SMM) for all services you provide through self-employment activities. Did you know that you can now prepare and transmit SMM electronically, saving time and cost and making your processes more efficient? In this article, we will explain e-SMM, its advantages, why, and how to use it.

What is e-SMM? How is it Different from a Self-Employment Receipt?

The e-Self-Employment Receipt (e-SMM) is a document prepared electronically and stored digitally by self-employed professionals.
The difference from the traditional self-employment receipt is that it is created in a digital environment instead of on paper, electronically signed, and recorded in the Revenue Administration (GİB) systems.

Who is Obliged to Use e-SMM?

According to the rules determined by the Revenue Administration, self-employed professionals are obliged to use e-SMM when they meet certain conditions. Especially as of 2020, all self-employed professionals whose annual gross earnings exceed a certain level are obliged to switch to the e-SMM system. The professional groups covered by this scope include self-employed individuals such as doctors, lawyers, engineers, financial advisors, and dentists.

What are the Features of e-SMM?

The main features of e-SMM are as follows:

• It has the status of a valuable document.
• It proves that you have collected a fee.
• It is the equivalent of an invoice and a receipt.
• It starts to be used after opening a taxpayer registration at the tax office.
• It is issued at the moment the service is provided and the collection is made.
• It is only issued to those who are real method income or corporate tax payers.
• It is filled out in two copies and the original is given to the customer.
• It is prepared by the self-employed professional according to the provisions of the Tax Procedure Law No. 213 regarding their professional activities.
• It has the exact same legal characteristics as the paper self-employment receipt.
• It can be digitally preserved and submitted.
• It is reported to the Revenue Administration (GİB) electronically.

How to Apply for an e-Self-Employment Receipt?

Self-employed professionals need to switch to the e-SMM system to adapt to the digitalizing tax processes.

e-Self-Employment Receipt Application Methods

There are several different methods for self-employed professionals who want to apply for an e-Self-Employment Receipt. The application process may vary depending on the size and need of the business.

Private Integration Method

The private integration method allows e-SMM to be issued through private integrator companies. This method is advantageous for those who issue a large volume of documents and offers professional support.

GİB Portal Method

e-SMM can be issued through the free GİB Portal offered by the Revenue Administration. It is a suitable solution for small businesses and individual users.

Direct Integration Method

This method means that businesses connect directly to the GİB system with their own software systems. It is preferred by large businesses.

Is a Financial Seal Required to Switch to e-Self-Employment Receipt?

Yes, self-employed professionals who want to switch to e-SMM must have a financial seal or electronic signature (e-Signature). While the financial seal is mandatory for companies, an e-Signature may be sufficient for sole proprietorships.

What Advantages Do You Gain by Switching to the e-SMM Application?

We can list these advantages as follows:

• Eliminates the need to prepare and store physical receipts.
• Increases tax compliance and facilitates audits.
• Reduces costs and increases operational efficiency.
• Offers fast and easy access.
• Supports sustainability by offering an environmentally friendly alternative.

How to Prepare and Issue e-SMM?

To issue e-SMM;

• You must write the name, surname, tax office, VKN or TCKN, and address information of the self-employed professional and the customer. ,
• You must also enter the date of issue by adding the hour and minute of issue to the document.
• After writing the amount of money received, which will also include tax details...