Software Export can be defined as the payment received by companies operating in one of the service sectors such as software or consulting in a country from firms or individuals in other countries in exchange for services provided. Although the concept of export generally brings to mind the sale of physical products abroad, the service activities that a company in one country will carry out in another country can also be considered as exports.

How is Software Export Done?

Performing a service sale is a more comprehensive and difficult process than performing a product sale. The most important factor in executing software sales is the needs. For any software sale to be realized, it is necessary to respond to the customer's needs in the most suitable way. Therefore, the topic of how software export is done is one that should be emphasized.

After the execution of the service sale, while current customer acquisition processes are being carried out, customer satisfaction should be prioritized in order not to lose old customers. In this regard, communication with the customer should be maintained continuously.
Convincing the customer for software sales is a task that requires intense effort. Here, it is necessary to develop a sales plan based on the needs of the business and to progress accordingly. It will be a more prudent decision to identify unseen needs in addition to visible needs and to carry out a persuasion effort in that direction.

To be successful in the software field, another aspect is to work with an experienced and professional team to use technology in the most accurate and comprehensive way during the service phase. This is a very effective method in ensuring customer satisfaction and trust.

While exporting software, it is essential not to sell services at a lower cost, nor should excessively high prices be set. This is a crucial point for the continuity of sales.

Why is Software Export Necessary?

Software production and consumption in Turkey continuously increase over time. It is aimed for this system, which provides a significant return domestically, to also yield high returns from international sales. The fact that exports to abroad will be conducted in foreign currency will enable the profit margin to be 2-3 times higher.

Knowing the social and cultural characteristics of the country where sales will be made during software export not only adds positive value to the sales but also makes it easier to reach the target market where sales will be conducted.

Companies that want to export software are required to conduct thorough research on the country they will be exporting to and to carry out their work accordingly. All these processes provide a response to the question of how software export is done and are of great importance for the sustainability of software export.

While activities related to software export are underway, budget planning should also be done effectively. Mistakes made can lead to significant losses with high amounts. To avoid facing such a situation, all tasks should be carried out with great diligence.

What are the General Conditions for Service Export?
In order for a service to be considered as service export;
· Services must be provided for a customer abroad.
· The service must be utilized abroad.

Which Companies Export Software?

● Samsun Computer Hospital Trade Limited Company
● Began Metal Engineering Advertising Industry Foreign Trade Limited Company
● Esıt Electronics System Ltd. Sti.
● Nasa Information Processing Products Ltd. Sti
● Entes Electronic Devices A.S.
● Btsıs Software
● Proton Automation Electrical Machines Contracting Industry and Trade Ltd. Şti.
● 5E Design Machine And It Techn.
● Enelsa Industrial Ltd. Sti.
● Elg Durable Consumer Goods Ltd. Sti.

What are the Incentives for Software Export?

Tax incentives are being implemented to enhance the international competitiveness of the country's economy through service exports, to create current areas for export, to create employment opportunities, and to maintain employment in Turkey with a skilled workforce.

The broadest aspect of tax incentives for software export is the discount that will be applied in the Income and Corporate Tax base. The 50% of the profit obtained will be deducted from the declared income and with the tax incentives for software export;
· It is aimed to increase the employment of those who specialize in a certain area in our country and have improved their foreign language skills,
· Additionally, to provide services all over the world and prevent brain drain.

Software Export GTIP Code

GTIP (Customs Tariff Statistics Position) is the name given to the 12-digit code found in our country's GTIP Tariff Customs Table. In the world, the tariff schedule in each country has been created based on the Harmonized System. The official name of the Harmonized System is "The Harmonized Commodity Description and Coding Systems," which is an international commercial classification system used for all goods involved in international trade, classified and organized within a specific logic and systematic framework for all products related to trade.

Regulations concerning the Harmonized System are carried out by the World Customs Organization at the international level. In our country, the institution responsible for the tariff schedule is the Ministry of Customs and Trade. At customs, products are processed through these codes. Each item/item group has its own GTIP.

The Harmonized System (Tariff Schedule) consists of 21 chapters and 96 headings. Headings are organized in such a way as to be divided into 2-digit codes, each heading into 4-digit codes called positions, and each position into 6-digit codes called sub-positions. The 2-digit, 4-digit, and 6-digit codes in each country's tariff schedule will be the same all over the world. After the 6-digit code in the Harmonized System, countries can detail it according to their needs (to obtain detailed statistics and apply customs duties on a more detailed product basis). In Turkey, products are classified at the most detailed basis with a 12-digit code. Since Turkey has a Joint Customs Union with the European Union, Turkey's 8-digit codes and product groups will be the same as those of the European Union countries.

The 10-digit National sub-opening code in the Turkish Customs Tariff table represents positions opened for our different tax applications but is not practically recognized. Therefore, customs duties in our country are determined at a 12-digit basis. In the tariff schedule, the GTIP code, which is 12 digits long, is used to classify products at the most detailed basis in our country, to apply customs duties on products, and for statistical purposes.

To summarize;
● The first 4 digits represent the position number of the item,
● The first 6 digits represent the Harmonized System Nomenclature code used by all countries that are members of the World Customs Organization,
● The 7th-8th digits represent the Combined Nomenclature code used by European Union countries,
● The 9th-10th digits represent codes indicating positions opened for different tax applications,
● The 11th-12th digits represent the Customs Tariff Statistics (GTIP) codes.

What is Software Export VAT Refund?

Software export must be evidenced by an invoice and similar documents issued for a customer abroad. The main intention here is that the service provided in Turkey for a customer abroad is related to the customer's activities abroad.

The exemption for earnings in software export came into effect on 15.06.2012. The provision concerning the exemption has been published under the title of Article 89 of the Income Tax Law and Article 10 of the Corporate Tax Law concerning Other Deductions.

In the case of services rendered in Turkey for customers abroad, a discount in the Income and Corporate Tax area has been made for individuals not residing in Turkey but having workplaces abroad. In this sense, 50% of the profit earned from the activities of the business served to persons not residing in Turkey is taken out of the exemption scope.

In order to benefit from the deductions made, the invoices and similar documents must be issued in the name of the customer abroad. Additionally, those meeting the necessary conditions can benefit from tax deductions as well as being exempt from VAT.

The software business being a sole proprietorship or a capital company will not affect the ability to benefit from the incentive. Therefore, if the necessary conditions are suitable, they can benefit from the incentives.