What Is the Crime of Fake Invoice Issuance and Use in Türkiye?

In Turkish tax law, preparing or using an invoice that does not reflect a real transaction is a serious financial crime. In practice, this is often called a fake invoice or “naylon fatura.” These cases appear frequently in criminal courts and tax enforcement, and they can have major consequences for companies, managers, accountants, and service providers who operate in Türkiye.

Under Article 359 of the Tax Procedure Law (Vergi Usul Kanunu, “VUK”), several acts qualify as tax evasion. Issuing or using fake invoices is one of the most common and heavily sanctioned forms. Criminal procedure is governed by the Code of Criminal Procedure (CMK) and civil-tax procedure by the Tax Procedure Law and related tax legislation.

What Counts as a Fake Invoice?

A fake invoice is a document that creates the appearance of a transaction that never occurred or misrepresents the nature or amount of the transaction. Examples include:

• Issuing an invoice when no goods or services were supplied.

• Recording a higher quantity or price than the real sale.

• Creating documentation for a fictitious supplier or customer.

For criminal liability to arise, the document must meet the formal elements of an invoice under VUK Article 230 such as date, serial and sequence number, parties’ tax details, description, quantity, price and delivery information. Documents that do not meet these minimum elements may be treated as never issued at all for tax purposes, but that does not automatically remove criminal exposure if other evidence shows intent to evade tax.

Legal Framework and 2022 Legislative Changes You Should Know

Significant amendments entered into force on 8 April 2022 that affect penalties, sentence reductions and how multiple years are treated.

Penalties under VUK Article 359

• VUK 359/b: Making or using fake documents by reproducing books or records in whole or in part as fake.
  Penalty range is 3 to 8 yearsimprisonment.

• VUK 359/c: Printing documents that only contracted printers are permitted to print, without authorization.
  Penalty range is 2 to 8 years.

• VUK 359/ç: Using documents printed by unauthorized persons.
  Penalty range is 3 to 8 years.

These upper limits were increased in 2022. Courts also consider aggravating or mitigating factors under the Turkish Criminal Code.

Effective Repentance and Sentence Reduction

A new effective repentance mechanism applies to fake invoice crimes:

• If, during investigation, the taxpayer pays the assessed tax plus all default interest and late payment surcharges, and pays half of the administrative fines plus the associated late payment surcharges, the criminal sentence is reduced by one half.

• If the same full payment occurs during prosecution before judgment, the sentence is reduced by one third.

• Where no assessment or fine has been made but tax loss exists, a statutory reduction may still apply.

To benefit, the taxpayer generally must not file tax court actions, or must withdraw any pending cases and waive legal remedies as required by the law.

Chain Crime for Multiple Years

Before 2022, each tax year could trigger a separate sentence. Now, when similar acts occur in different tax years or periods, courts may apply chain-crime rules under TCK Article 43, which results in a single base sentence with an increase, rather than separate convictions for every year. This can substantially affect total exposure and also supports retroactive sentence adjustments for finalized cases through adaptation proceedings.

Prosecution Prerequisite: The “Opinion” Requirement

Per VUK Article 367 and Court of Cassation practice, criminal proceedings for fake invoice crimes typically require an administrative opinion or report issued by the tax administration or authorized tax inspectors. If the prosecutor learns of the offense through other means, the prosecutor generally notifies the taxpayer’s tax office and awaits the outcome of the tax examination. Filing a public criminal case without the required opinion may be treated as a procedural defect.

Fake Invoice vs. Misleading Content Document

These two concepts are often confused:

• Fake invoice: Pretends there is a transaction when no real transactionexists at all, or the document is wholly fabricated.

• Document misleading in content: There isa real transaction, but the nature or amountis misrepresented, for example showing a price of 100 when the real price was 1,000.

Both can create criminal and tax exposure, but the evidentiary focus and defense approach differ. It is crucial to identify the correct category early in the case.

Statute of Limitations

General rules of the Turkish Criminal Code apply. For fake invoice offenses, the statute of limitations is typically 8 years, starting from the date the invoice was issued. Defendants must raise limitation defenses; courts do not always apply them ex officio.

Can Prison Sentences Be Converted or Suspended?

• Conversion to judicial finesis often difficultbecause the legal penalty ranges usually exceed one year. If mitigating factors lower the sentence below the threshold, conversion may be considered.

• Deferral of the announcement of the verdictmay be possible when statutory conditions are met, for example if the defendant has no prior intentional conviction and the sentence does not exceed the legal limit. In such cases, the person is placed under probationand the conviction is not enforced if the period is completed without new intentional crime.

• Suspension of sentencemay also be available within statutory limits and subject to the court’s discretion.

Frequently Asked Questions

Is the offense subject to complaint or settlement?

Fake invoice crimes under VUK are not subject to complaint and not subject to CMK reconciliation. Separate tax settlement procedures under tax law are different and do not equal criminal reconciliation.

Does effective repentance apply at appeal stages?

Yes. The 2022 amendments allow taxpayers with files at investigation, prosecution, appellate review or cassation to benefit, provided they meet all payment and waiver conditions before judgment or within the time windows set by law.

What if the case involves multiple tax years?

After the 2022 reform, chain-crime treatment can apply. For earlier finalized judgments that punished each year separately, adaptation proceedings may allow a more favorable, unified calculation.

What about companies that unknowingly used fake invoices from third parties?

Courts evaluate knowledge and intent. Robust vendor due diligence, contractual warranties, payment trails, and independent verification of suppliers can be decisive in showing lack of criminal intent.

Practical Compliance Tips for Foreign-Owned Businesses in Türkiye

• Build a vendor onboarding checklistthat verifies tax IDs, trade registry details, and addresses.

• Reconcile delivery notes, transport records, and payment slipswith invoices.

• Use e-Invoice and e-Archivesystems correctly and keep immutable logs.

• Conduct periodic internal audits, and commission forensic accountingif anomalies appear.

• Preserve evidence of commercial reality, such as contracts, correspondence, and proof of delivery.

• If risk is detected, consult counsel early to assess effective repentanceoptions and the VUK 367 opinionpathway.

How Bayraktar Attorneys Can Help

At Bayraktar Attorneys, we represent companies, executives, and finance professionals facing fake invoice and tax-evasion allegations in Türkiye. We provide:

• Defense in criminal investigations and prosecutionsunder VUK 359.

• Strategy for effective repentanceand payments to reduce sentences.

• Adaptation proceedingsfor finalized cases after the 2022 reforms.

• Forensic reviewof accounting records and supplier chains, with expert partners.

• Corporate compliance programsand staff training for prevention.

Contact our bilingual team to safeguard your legal position and limit exposure.

📞 [email protected] | 🌐 www.bayraktarattys.com
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