Dear user! Through this section, legal entities and individuals wishing to start an entrepreneurial activity may be informed of some procedures as well as their tax liabilities during their relations with tax authorities.
Registration-related issues
Individuals' tax registration
The following documents shall be submitted to the tax authority at the place of activity of the individual who wishes to carry out special notarial activities for registration with the tax authority, and at the place of residence of the individual who wishes to carry out other activities:
- "Application on tax registration of an individual";
- • Copy of the identity document of an individual;
- • For foreigners and stateless persons - a license issued by the State Migration Service of the Republic of Azerbaijan.
Within 1 day from the date of receipt of the documents, the tax authority shall provide free tax registration of an individual and present the taxpayer a relevant certificate.
E-registration of individuals shall be carried out immediately and the relevant certificate shall be sent in real time to the email address specially established for them.
In the application filed at the time of registration, an individual shall enter information about the taxation system that the individual will apply, among other informations, and the payer's tax liability shall be determined in accordance with his/her tax liabilities.
The taxpayer shall also be provided with a control book, along with a certificate confirming his/her tax registration when registering.
Please note that an individual has the opportunity to register online. To do so, that person shall log in to the Internet Tax Administration (www.e-taxes.gov.az) via the electronic service "Online Registration of Individual Entrepreneurs" from "E-Services" section. For this purpose, an individual shall, first of all, have an enhanced advanced electronic signature.
State registration of legal entities
Since January 1, 2008, the state registration of the subjects of entrepreneurial activities (commercial and legal entities, branches and representations of foreign commercial legal entities) in the Republic of Azerbaijan has been carried out by the Tax Service on the principle of a single registration authority. Thus, the state registration of a commercial entity, including branches or representations of a foreign commercial legal entity seeking to obtain the status of a legal entity shall be completed no later than 2 days, electronic state registration of a limited liability company with local investments shall be carried out immediately via the fast electronic state registration, and not later than 1 day via the regular electronic state registration.
Information on the list of documents required for registration, as well as on tax authorities to which the documents are to be submitted, etc. can be found in the "One-stop shop" section of our page.
In accordance with the provisions of the Law on State Duty (Article 20), a certain amount of state duty shall be paid to the state budget at the time of registration:
- banks, stock exchanges, insurers, insurance unions and brokers, representations and branches of foreign legal entities – 220 AZN;
- legal entities engaged in agricultural activity – 3 AZN;
- other legal entities – 11 AZN;
- for re-registration of legal entities - 50% of the amount indicated in paragraphs a, b, c.
In addition to other documents, a legal entity shall also include in the"Application for State Registration of a Commercial Legal Entity"the information on the tax regime that a legal entity will apply in addition to other information on the legal entity and the payer's tax liability shall be determined in accordance with his/her tax obligations.
The taxpayer shall also be provided with a control book, along with a certificate confirming his/her tax registration when registering
Obtaining a certificate duplicate to open a bank account
To open a bank account, a taxpayer who doesn't have debt to the state budget can apply directly to the tax authority or send online "Application for obtaining a certificate duplicate to open a bank account" in the form of an electronic document by logging in through user code, command word and password or enhanced advanced electronic signature, including ASAN signature and selecting the section "Online Clerical Work and e-VHFTI" at the Internet Tax Administration (www.e-taxes.gov.az) (For more information to apply online, please refer to the INSTRUCTIONS on using the "Online Clerical" website).
The tax authority shall issue a certificate duplicate to the taxpayer not later than 2 days after filing the application, and the taxpayer shall open a bank account within 10 days at the bank specified in the document.
If the bank account is not opened within the specified period, the certificate duplicate shall be considered invalid and the taxpayer shall be obliged to return it to the tax authority.
If there is an electronic document exchange between the State Tax Service and a bank where the account is opened, there will be no need to apply to the tax authority to obtain a certificate duplicate. In this case, the applicant shall apply directly to the bank within the timeframes specified in the notice, otherwise, the taxpayer shall, on the basis of the published notice, obtain a duplicate certificate from the tax authority where he / she is registered and apply to the bank.
Please be informed that when opening an account in a non-resident bank or credit institution as part of its business activities, the taxpayer shall make proper notes in the notice section of the certificate duplicate issued by the tax authority and submit to the tax authority until the date of transactions on these accounts.
If the taxpayer has a branch, representation or other business entity (facility), the taxpayer shall be registered at the place of its location and at the address where its branch, representation or other business entity (object) locate. The following documents shall be submitted to the tax authority for registration:
- Application for “tax registration at the place of location of the taxpayer’s affiliatebranch, representation or other business entity (facility)”;
- Copy of the Regulations of the branch or representation;
- Copy of the taxpayer's decision to open a branch, a representation or a business entity (facility);
- Copy of the decision about the manager of the branch, representation or business entity (facility) (decision about the manager shall not be required if the manager of the business entity is the individual who is its user);
- Copy of (title document, lease agreement or other document provided by the law) the document confirming the address of the activity.
When registering a branch, representation or business entity (facility), the taxpayer shall be issued a reference containing the 15-digit code.
If an entrepreneurial activity or other taxable operation in the business entity is temporarily suspended during the tax year, the tax authority shall be provided with a "Reference of suspension of activities and other taxable transactions of a taxpayer, its branch, representation or other business entity (facility)" by checking the relevant box in the reference, no later than the date of suspension of activities or operations.
To de-register the branch, representation or other business entity (facility), the taxpayer shall file an application to the tax authority and return the reference received at the time of registration.
The following documents shall be attached to the application (documents should be added in PDF format while application is made in electronic form):
• SMC’s (Service Maintenance Center) act on Installation of cash register;
• A receipt showing a fiscal record index of the cash register to the filing date of the application;
• SMC’s act on electronic remote control device or electronic control tape installed at the cash register. The act shall include a copy of the “Z” report on the turnovers into the cash register as an example of up to 10 kopecks after the change of fiscal record of the used cash register and the receipt of a new fiscal record report.
An electronic application can also be submitted on behalf of the authorized Service Maintenance Center (SMC) under the Agreement, and in which case a PDF format of the Agreement shall be attached.
Under the agreement, the SMC shall provide the taxpayer with a cash register’ maintenance book and a book of operations record to be used when the cash register is not operational.
Registration document made upon registration of cash registers shall be issued to the taxpayer as a hard copy within 2 business days only at request of the taxpayer, and in other cases, the cash register’s registration document shall be transmitted to the taxpayer's email box.
In case of suspension of cash settlements with the population by the taxpayer or if there is a need for cash register to be deregistered for any other reason, the taxpayer can apply directly to the tax authority or send online "Application for registration (deregistration) of a cash register" in the form of an electronic document via the menu "Registration and deregistration of cash registers" by logging in through user code, command word and password or advanced electronic signature, including ASAN signature and selecting the section "e;Online Clerical and e-TI"e; at the Internet Tax Administration (www.e-taxes.gov.az)
The following documents shall be attached to the application (documents should be added in PDF format while application is made in electronic form):
• SMC’s act on seal damage (SMC act shall include fiscal record index);
• An act confirming the operational status of the electronic remote control device or electronic control tape installed on the cash register;
• A receipt showing the cash register’s fiscal record index.
At the request of a taxpayer, the application may also be filed by the SMC, and in this case, the SMC shall be submitted a “Maintenance book” and a “Book of operations record when the cash register is not operational”, the registration sheet, and the technical passport.
After carrying out the internal procedures, the authorized representative of the tax authority shall receive the "Cash register’s maintenance book", “A book of operations record when the cash register is not operational” from the taxpayer (or from the SMC if he/she files an application), and affix the deregistration stamp on the cash register’s registration sheet and technical passport, and the remaining documents in the SMC shall then be returned to the taxpayer.
According to the received application, the tax authority shall register the taxpayer in the State Register of VAT payers and issue the "VAT payer registration notice" within 5 business days of filing the application.
Taxpayers who wish to register/deregister online for VAT purposes shall log in through user code, command word and password or advanced electronic signature, including ASAN signature by selecting the section "Online Clerical and e-TI" at the Internet Tax Administration (www.e-taxes.gov.az) "via “E-Services” section of our page, and then apply to the tax authority in the form of an electronic document with a “VAT registration request” or a "VAT deregistration request"
More information on the steps required to register online can be found in the "INSTRUCTIONS on using the "Online Clerical" website. INSTRUCTIONS on how to use the website "Online Clerical Work”. The taxpayer shall submit the following documents to the tax authority together with the request for cancellation of VAT registration in accordance with the provisions of Article 158 of the Tax Code:
• "Value added taxpayer registration notice";
• Tax return containing due VAT accrued onin the section balance of goods as of the date of cancellation.
Following the above procedures, the tax authority shall send a “Notice of Annulment of Registration for VAT purposes” within 3 business days to the taxpayer.
Tax Liability of Taxpayers
It should also be noted that taxation of income on rental property and royalties but not taxable at the source of payment shall be calculated on the gross income without any expenses.
The calculated tax amountamount of accrued tax shall be declared to the tax authority not later than March 31 of the year following the reporting year with the "Income Tax Return" and paid to the state budget no later than that date.
Individuals who act as private notaries shall be registered with tax authorities at the place of their activity differently from the others and subject to income tax. Thus, these persons shall be taxed at the rate of 10% in accordance with Article 101.4 of the Tax Code without deduction of expenses from the fees received for notarial actions, as well as for notarial services during the month, and the accrued due tax shall be paid to the state budget no later than the 20th day of the next month, and shall be declared to the tax authority with the "e;Private Notary's Income Tax Return"e; no later than the 20th of the month following the end of each quarter, and VAT shall not be deducted from their notarial actions and services provided in respect to the notarial actions.
Tax liability of simplified taxpayers
A person who receives income from entrepreneurial activity and is registered as a simplified tax payer shall calculate the tax amount by applying 2 percent for the volume of production obtained for the goods (services provided) and property delivered within the reporting quarter, as well as non-sales revenues. Simplified taxpayers engaged in trade and food service shall calculate their taxes at the rate of 8% respectively. The amount of accrued tax shall be declared with the "Simplified Tax Return" and paid to the state budget no later than the 20th of the month following the reporting period.
An individual who is a simplified tax payer shall be exempt from VAT and income tax on entrepreneurial activity, while a legal entity shall be exempt from VAT and profit tax.
Taxpayer (with the exception of a person who carries out transportation by motor vehicles in the territory of the Republic of Azerbaijan, or engaged in construction of a building, or involved in the organization of the sports betting) whose amount of taxable operations within the entrepreneurial activity is over 200,000 manat in any month (months) of a consecutive 12-month period shall file an application for registration of VAT purposes within 10 days of the following month, and shall fulfill the tax obligations of the VAT payer after VAT registration is carried out by the tax authority.
In case of the total operation value of a transaction or contract exceeds 200,000 manat, this transaction shall already be considered VATable operation and the taxpayer performing the operation shall file an application to the tax authority for VAT purposes prior to the operation.
It should also be noted that certain persons specified in Article 218.5 of the Tax Code shall not be entitled to apply the simplified tax. However, if those persons who receive income from renting or royalty engage in other activities, they can apply the simplified tax to the income from other activities by keeping records of income and expenses for each activity if there is no obligation for VAT registration under the aforementioned conditions.
In addition, the simplified tax payer may have other tax obligations according to income that is the subject of other taxes.
Tax on land - Individuals, who own or use land in the territory of the Republic of Azerbaijan, shall also be payers of land tax, whose land tax is calculated on a yearly basis by the municipality, and payment notice of these taxes shall be delivered to them no later than August 1, and shall be paid in equal amounts not later than August 15 and November 15. Land tax of individuals for lands intended for agricultural activity but not used on their targeted designation shall be paid to the state budget; in other cases, the land tax of individuals shall be paid to the local budget (municipal budget).
Property Tax - Buildings or their parts (houses) owned by resident and non-resident individuals and located on the territory of the Republic of Azerbaijan, as well as water and air transport vehicles owned by resident persons, regardless of their location and use, shall be considered subject of taxation of property tax. Property tax on buildings that are in private ownership of individuals shall be calculated at the rates specified in Article 198.1.1 of the Tax Code for each square meter of the dwelling area (except balconies or verandahs) over 30 sqm by the municipality where they are located (Applying coefficients in the range of 0.7-1.5, approved by the Resolution No. 101 of the Cabinet of Ministers dated April 6, 2015, in addition to those rates when the building is located in Baku); 0,02 manat for 1 cubic centimeter of engine of water and air vehicle, and 1% of market price for non-motorized water and air vehicles, and the payment notice shall be given to the individual no later than August 1, and these individuals shall pay the tax to the local (municipal) budget by equal portions until August 15 of the current year.
Mining Tax - The amount of tax calculated by applying the rates specified in Article 216 of the Tax Code to the wholesale prices or the volume of minerals extracted from the depth of the ground shall be declared to the tax authority or the municipality along with the "Mining Tax Return" pursuant to the type of minerals and paid to the state or municipal budget no later than the 20th of the month following the reporting month;
Income tax on hired labour at the source of payment - the employer shall transfer to the budget income tax withheld from the monthly income of the employee at the rates specified in Article 101.1 of the Tax Code, not later than the 20th of the next month, and submit a tax return to the tax authority according to the "Tax return for hired labour at the source of payment" not later than January 31 of the year following the reporting year;
Withholding tax on other income at the source of payment - amount of tax withheld by the payer at certain rates from income payable at source of payment in cases provided by Article 150 of the Tax Code (excluding income from hired work) shall be declared to the tax authority with the "Withholding Tax Return at the Source of Payment" and paid not later than the 20th of the month following the reporting quarter.
It should be noted that the tax obligations of certain categories of taxpayers who pay mandatory simplified tax in relation to the performed activities done shall be determined differently: The tax of the simplified tax payer who carries out transportation on the territory of the country by motor vehicle owned or operated, shall be calculated depending on the nature of the transportation, the type of vehicle, the number of seats and the location of the service under Article 220.5 and 220.6 of the Tax Code, and paid to the state budget by the end of the calendar month at its sole discretion, when acquiring the "Distinction mark" which is a serious reporting form for the next month, quarter, half-year, or year. A person carrying out transportation by a motor vehicle shall not be required to submit a tax return to the tax authority.
Funds received from the participants for the operator of a sports betting game and the commission fee paid by the operator for the sports betting games seller shall be a subject of taxation of the simplified tax where a simplified tax is deducted at the rate of 6% from the money received by the operator of the sports betting games from participants, and at the rate of 4% from the commission paid by the operator to the seller of sports betting games, and shall be declared to the tax authority along withby filling out the "Simplified Tax DeclarationReturn" and paid to the state budget no later than the 20th of the month following the quarter.
Individuals (hairdressers, tailors, shoemakers, cobblers, musicians, waiters, etc.) who are individually engaged in the types of activities provided for in Article 220.10 of the Tax Code, with the exception of individuals engaged in activities - before the start of their activities , must voluntarily receive a "Receipt of payment of a fixed amount of simplified tax" for the next month, quarter, half-year or year. The monthly amount of the simplified tax for these persons shall be calculated by applying the coefficients established for the territory in which they operate to the tax rates provided for in Article 220.10 of the Tax Code. Persons operating by receiving a "receipt for payment of a fixed amount of simplified tax" are not required to submit a tax return to the tax authority.
Tax liabilities of individual entrepreneurs who are payers of income tax
An individual entrepreneur earning income from entrepreneurial activity and registered as a payer of income tax shall calculate 20% of the income tax from income earned during the reporting year, that is, the difference between the taxable income and the expenses incurred for the acquisition of these incomes and deductible in accordance with Chapter X of the Tax Code. The amount of tax accrued shall be declared to the tax authority not later than March 31 of the year following the reporting year along with the "Income Tax Return".
An individual entrepreneur paying income tax, at least once a quarter during the reporting year, shall pay the current income tax to the budget in accordance with Article 151 of the Tax Code, and carry out the final calculations with the budget at the end of the reporting year until submission of the tax return
Income taxpayer whose volume of taxable operations within a business activity exceeds 200,000 manats in any month (months) of consecutive 12-month period shall file an application for registration for VAT purposes within 10 days of the next month, and shall fulfill the VAT taxpayer obligations after being registered as a VAT payer by the tax authority. Please note that if the total cost of the operation per one transaction or contract exceeds 200,000 manat, this operation shall be considered as operation subject to VAT, and the taxpayer performing this operation shall submit an application for registration for VAT purposes prior to the date of carrying out of operation.
In addition, if the income tax payer is the subject of taxation, there may be other tax obligations:
Tax on land - Individuals who own or use land in the territory of the Republic of Azerbaijan shall also be taxpayers of land tax, whose land tax is calculated on a yearly basis by municipalities, and the notification of payment of those taxes shall be delivered to them not later than August 1, and calculated taxes shall be paid to the municipal budget not later than August 15 and November 15. Land tax of individuals for lands intended for agricultural activity but not used on their targeted designation shall be paid to the state budget; in other cases, the land tax of individuals shall be paid to the local budget (municipal budget).
Property Tax - Buildings or their parts (houses) owned by resident and non-resident individuals and located on the territory of the Republic of Azerbaijan, as well as water and air transport vehicles owned by resident persons, regardless of their location and use, shall be considered subject of taxation of property tax. Property tax on buildings that are in private ownership of individuals shall be calculated at the rates specified in Article 198.1.1 of the Tax Code for each square meter of the dwelling area (except balconies or verandahs) over 30 sqm by the municipality where they are located (Applying coefficients in the range of 0.7-1.5, approved by the Resolution No. 101 of the Cabinet of Ministers dated April 6, 2015, in addition to those rates when the building is located in Baku); 0,02 manat for 1 cubic centimeter of engine of water and air vehicle, and 1% of market price for non-motorized water and air vehicles, and the payment notice shall be given to the individual no later than August 1, and these individuals shall pay the tax to the local (municipal) budget by equal portions until August 15 of the current year;
Road tax - motor petrol, diesel fuel and liquid gas produced on the territory of the Republic of Azerbaijan and directed to domestic consumption (wholesale) and imported into the territory of the Republic of Azerbaijan shall be subjects for imposition of the road tax.
The road tax for motor petrol, diesel fuel and liquid gas produced on the territory of the Republic of Azerbaijan and directed to domestic consumption (wholesale) shall be calculated by multiplying 0.02 manats to the wholesale price (including VAT and excise tax) of each litre thereof. The road tax for imported motor petrol, diesel fuel and liquid gas shall be calculated by multiplying 0.02 manats to the customs value (including VAT and excise duty) determined in accordance with the Customs Code of the Republic of Azerbaijan but not below the wholesale market price of each liter.
Persons engaged in production or import of motor petrol, diesel fuel and liquid gas in the Republic of Azerbaijan shall calculate the road tax on a monthly basis and pay the tax to the state budget not later than the 20th of the month following the reporting month by submitting a road tax return to the tax authority.
Mining tax (royalty) - The amount of tax calculated by applying the rates specified in Article 216 of the Tax Code to the wholesale prices or the volume of minerals extracted from the depth of the ground shall be declared to the tax authority or the municipality along with the "Mining Tax Return" pursuant to the type of minerals and paid to the state or municipal budget no later than the 20th of the month following the reporting month;
Excise tax - A person engaged in the production or import of excise goods (TC 190) on the territory of the Republic of Azerbaijan shall, depending on the type of excise goods and the nature of the operation, declare to the tax authority the tax amount accrued in accordance with Chapter XII of the Tax Code and provisions of the decisions of the Cabinet of Ministers (Decisions № 20 of January 19, 2001, No.1 of January 6, 2007, and No 85 of May 29, 2007) along with an Excise Return and pay the due tax to the state budget not later than the 20th of the month following the reporting month;
Income tax on hired labour at the source of payment - the employer shall transfer to the budget income tax withheld from the monthly income of the employee at the rates specified in Article 101.1 of the Tax Code, not later than the 20th of the next month, and in case non-VAT payer, the return shall be submitted to the tax authority no later than the 20th of the month following the reporting quarter by filling out the "Tax return for hired labour at the source of payment" ilə vergi orqanına bəyan etməlidir;
An individual who is registered for VAT purposes shall declare respectively to the tax authority no later than January 31 of the year following the reporting year;
Withholding tax on other income at the source of payment - amount of tax withheld by the payer at certain rates from income payable at source of payment in cases provided by Article 150 of the Tax Code (excluding income from hired work) shall be declared to the tax authority with the "Withholding Tax Return at Source" and paid not later than the 20th day of the month following the reporting quarter.
Tax liabilities of legal entities that are payers of profit tax
A legal entity registered as a payer of profit tax shall calculate 20% of the profit tax from profit earned during the reporting year, that is, the difference between the taxable income and the expenses incurred for the acquisition of these incomes and deductible in accordance with Chapter X of the Tax Code. The amount of tax accrued shall be declared to the tax authority not later than March 31 of the year following the reporting year along with the "Profit Tax Return". An individual paying profit tax, at least once a quarter during the reporting year, shall pay the current profit tax to the budget in accordance with Article 151 of the Tax Code, and then carry out final calculations with the budget at the end of reporting year until the submission of the tax return.
Moreover, the payer of the profit tax, who has property on its balance, shall submit the "Property Tax Return"ni to the tax authority no later than March 31 of the year following the reporting year. The taxpayer, once a quarter during the reporting year, shall pay the current profit tax to the budget in accordance with Article 201 of the Tax Code, and then perform the final calculations with the budget at the end of the reporting year until the submission of the tax return.
Taxpayer, whose volume of taxable operations within a business activity exceeds 200,000 manats in any month (months) of consecutive 12-month period, shall file an application for registration for VAT purposes within 10 days of the next month, and shall fulfill the VAT taxpayer obligations after being registered as a VAT payer by the tax authority. Please note that if the total cost of the operation per one transaction or contract exceeds 200,000 manat, this operation shall be considered as an operation subject to VAT, and the taxpayer performing this operation shall file an application for registration for VAT purposes prior to the date of carrying out of the operation.
In addition, if the income of profit tax payer is the subject of taxation, there may be other tax obligations :
Tax on land - a simplified tax payer who is a legal entity shall pay the amount of tax accrued for agricultural land in its ownership or use not later than May 15 of the current year along with a "Land Tax Return" and pay in equal portions no later than November 15 starting from August 15.
Road tax - motor petrol, diesel fuel and liquid gas produced on the territory of the Republic of Azerbaijan and directed to domestic consumption (wholesale) and imported into the territory of the Republic of Azerbaijan shall be subjects for imposition of the road tax.
The road tax for motor petrol, diesel fuel and liquid gas produced on the territory of the Republic of Azerbaijan and directed to domestic consumption (wholesale) shall be calculated by multiplying 0.02 manats to the wholesale price (including VAT and excise tax) of each litre thereof. The road tax for imported motor petrol, diesel fuel and liquid gas shall be calculated by adding 0.02 manats to the customs value (including VAT and excise duty) determined in accordance with the Customs Code of the Republic of Azerbaijan but not below the wholesale market price of each liter.
Persons engaged in production of motor petrol, diesel fuel and liquid gas in the Republic of Azerbaijan shall calculate the road tax on a monthly basis and pay the tax to the state budget not later than the 20th of the month following the reporting month by submitting a road tax return to the tax authority.
Mining tax (royalty) - The amount of tax calculated by applying the rates specified in Article 216 of the Tax Code to the wholesale prices or the volume of minerals extracted from the depth of the ground shall be declared to the tax authority or the municipality along with the "Mining Tax Return" pursuant to the type of minerals and paid to the state or municipal budget no later than the 20th of the month following the reporting month;
Excise tax - A person engaged in the production or import of excise goods on the territory of the Republic of Azerbaijan, depending on the type of excise goods and the nature of the operation, shall,declare due tax to the tax authority in accordance with Chapter XII of the Tax Code and provisions of the decisions of the Cabinet of Ministers (Decisions № 20 of January 19, 2001, No.1 of January 6, 2007, and No 85 of May 29, 2007) by submitting the Excise Tax Return and pay the due tax to the state budget not later than the 20th of the month following the reporting month;
Income tax on hired labour at the source of payment - the employer shall transfer to the budget income tax withheld from the monthly income of the employee at the rates specified in Article 101.1 of the Tax Code, not later than the 20th of the next month, and in case non-VAT payer - the tax return shall be submitted to the tax authority no later than the 20th of the month following the reporting quarter by filling out the "Tax return for hired labour at the source of payment";
A legal entity who is registered for VAT purposes shall declare respectively to the tax authority no later than January 31 of the year following the reporting year;
Withholding tax on other income at the source of payment - amount of tax withheld by the payer at certain rates from income payable at source of payment in cases provided by Article 150 of the Tax Code (excluding income from hired work) shall be declared to the tax authority with the "Withholding Tax Return at Source" and paid to the budget not later than the 20th of the month following the reporting quarter.
Only insurers who are required to withhold taxes at the source of payment from the insurance contributions paid on early-terminated insurance contracts shall file the tax returns according to the results of the quarter and pay the amount of withheld tax to the budget not later than the 20th of the month following the reporting month.
Tax liabilities of VAT payers
Within the scope of entrepreneurial activity
a) persons voluntarily registered for VAT purposes;
b) subject to filing an application for mandatory registration for VAT purposes within 10 days of the following month since the amount of taxable transactions exceeds 200,000 manat in any month (months) of the consecutive 12-month period;
c) whose total operation value on a transaction or contract exceeds 200,000 manatsa and, therefore, subject to filing an application for registration for VAT purposes prior to the commencement date of operation;
d) subject to filing an application for registration VAT purposes for the production of excise goods;
e) persons engaged in house building activity, who do not use the right of being the
- to the amount that the taxpayer receives or should receive.
The amount payable to the budget shall be the difference between amount of VAT calculated on the goods (works, services) provided, and the VAT paid by the payer for goods purchased or imported, works performed, services rendered and credited in accordance with the provisions of Article 175 of the Tax Code.
The amount of tax paid to the deposit account of VAT as per payments and operations performed within such account made by cashless transfer on electronic tax invoices issued to taxpayer shall be considered the amount of calculated tax in accordance with this Article.
The following considerations shall be taken into account when determining date of the taxable transaction occurs and date when it is subject of taxation:
if payment for goods (works, services) delivered or supplied is made within 30 days, the taxable transaction shall be deemed to have occurred on the date the payment was made;
If payment for goods (works, services) delivered or supplied is made after 30 days, the taxable transaction shall be deemed to have occurred on the date of filing of the electronic tax invoice if the electronic tax invoice is issued within 5 days stipulated by the legislation;
if payment of goods or services (works, services) delivered or supplied is made after 30 days, the taxable transaction shall be deemed to have occurred at the date of delivery or supply of the goods (works, services) if the electronic tax invoice is not submitted within 5 days or submitted later.
The amount of VAT payable to the budget during the reporting month shall be declared to the tax authority by filling out the “VAT Return” no later than the 20th of the month following the reporting month, and the tax shall be paid to the budget during that period.
At the same time, an individual entrepreneur acting as a VAT payer shall meet the tax obligations of the income tax payer while the legal entity shall comply with tax obligations of the profit tax payer.
Regardless of the applied tax type (simplified, income, profit, VAT) the taxpayer who imports taxable goods into the country, shall pay VAT on the taxable value of these goods to the customs authorities.
For further information on tax mattersissues, please contact the State Tax Service by the number of Call Center -195-1 or pay a visit to the taxpayer service centers of the tax authority where you are registered (in the area where you reside ).
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