Turkey's Treasury and Finance Ministry plans to leverage AI technology to combat tax evasion, enhance audit efficiency, and detect fraud, particularly in high-risk sectors like construction. By employing predictive and advanced analytics and tools for tax and customs analysis, Turkey aims to improve its tax collection rates and close the compliance gap with other OECD countries. AI will automate and streamline data analysis, helping authorities identify suspicious patterns and discrepancies more effectively than traditional methods
Turkey Embraces AI and Machine Learning to Tackle VAT and Tax Fraud
Public
Turkey
Author: Stefan Ditrih
Category:
Fiscal subject related
General information
Views:
1292
Content accuracy validation date:
18.10.2024
Content accuracy validation time:
09:02h
Turkey is gearing up to harness the power of artificial intelligence (AI) in its battle against tax evasion, following in the footsteps of other countries such as Austria. The Turkish Treasury and Finance Ministry recently announced this strategic initiative, aiming to employ AI technologies to audit businesses more efficiently and detect tax avoidance and fraud. This move is part of a broader effort to enhance the country's tax collection capabilities, which currently lag behind other OECD nations.
A significant number of Turkish businesses report little to no profits, with more than half declaring either losses or minimal gains. This trend raises concerns within the Ministry, particularly in sectors like construction that are prone to large-scale tax fraud schemes. To address these issues, AI will be deployed in various capacities, including:
- Predictive Analytics: AI models will be used for data pre-processing, enabling authorities to anticipate patterns of fraud or tax evasion.
- Advanced Analytics: Enhanced analytical tools will assist in interpreting more complex tax reporting data.
- Tax Analytics: These tools will consolidate a wider range of tax data, such as salary reports, for more comprehensive reviews.
- Customs Analytics: AI will aid in risk profiling, support customs-related tasks, and help track down international fraud cases.
Other countries have successfully implemented AI-powered measures to combat VAT fraud, and Turkey hopes to achieve similar results. The Ministry has highlighted that advanced technology can significantly boost compliance and detection rates, allowing auditors to uncover wrongdoing more effectively than traditional methods.
AI offers a revolutionary solution to this problem. By analyzing vast quantities of data from tax filings, financial records, and even online activity, AI algorithms can identify suspicious patterns that would be nearly impossible to detect manually. For example, AI systems could flag discrepancies between a company’s declared earnings and its market presence or highlight unusually high expenses relative to industry benchmarks. Automating these processes enables tax authorities to conduct more thorough and accurate audits, minimizing opportunities for tax evasion.
Other news from Turkey
Update to the Turkish e-Invoice Package
Public
Turkey
Author: Ivana Picajkić
Turkey
Author: Ivana Picajkić
Turkey has released an update to the e-Invoice Package, introducing new technical and compliance adjustments that businesses must adopt to remain aligned with the country’s electronic invoicing requirements. The Turkish Revenue Administration has announced updates to the e-Invoice Package and the UBL-TR (Code Lists) Guide. These updates, which improve technical standards and code lists for electr... Read more
E-Ledger Compliance in Turkey
Public
Turkey
Author: Ivana Picajkić
Turkey
Author: Ivana Picajkić
Companies in Turkey must keep and certify their commercial ledgers digitally under Tax Procedure Law No. 213 and the Turkish Commercial Code, with strict penalties for late or missing opening and closing certificates. Non-compliance can lead to heavy fines, denied VAT deductions, blocked refunds, loss of evidential value in court, and even prison, making e-Ledger management a critical compliance p... Read more
Turkey: TPF Proposes Closing Supermarkets on Sundays
Turkey
Author: Ivana Picajkić
The Turkish Retailers Federation’s 2025 report highlights local chains’ job creation role and proposes Sunday supermarket closures to ease worker fatigue, support family life, and benefit small businesses, starting with pilot regions. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Turkey Published e-Archive Technical Guide Version 1.18
Turkey
Author: Ivana Picajkić
Turkey’s e-Archive Technical Guide version 1.18 introduces major updates to invoice data formats, mandatory fields (like UUIDs, discounts, and tax details), and stricter reporting and security requirements, including precise invoice signing timestamps. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Turkey Updates e-Archive Package and Technical Manual
Turkey
Author: Ivana Picajkić
Turkey’s Revenue Administration has updated the e-Archive package and Technical Manual, with the new rules taking effect on October 3, 2025. Here's what it is about! Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Turkey: New Generation Payment Devices Must Accept Payments Via Debit/Credit Cards
Turkey
Author: Ivana Picajkić
As of July 1, 2024, all New Generation Payment Devices (NGPDs) in Turkey must be able to process debit and credit card payments, backed by a merchant agreement with a bank or licensed provider. Do you want to find out more on this? Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login
Non-Deductible VAT in Turkey
Turkey
Author: Ivana Picajkić
In Turkey, “Non-Deductible VAT” refers to VAT that businesses cannot offset against their VAT liability due to legal restrictions, documentation issues, or the nature of the expense. Common cases include purchases without proper invoices, goods or services used for non-business purposes, or special categories like vehicles, disputed invoices, and losses. Read more
Subscribe to get access to the latest news, documents, webinars and educations.
Already subscriber? Login