Persons with simplified tax payer rights
According to the legislation, the following persons have the right to be the payer of the simplified tax:
- Taking into account the relevant provisions of the Tax Code, persons who are not registered for VAT purposes and whose taxable transactions are 200,000 manats or less in any month during a consecutive 12-month period;
- Individuals who perform public catering activities whose taxable transactions exceed AZN 200,000 in any month during a consecutive 12-month period.
A taxpayer who has the right to become a simplified tax payer provided by law must submit the relevant declaration and written information that he will not use the rights to the tax authority no later than April 20 of each year. In Article 218.4 of the Tax Code the mentioned taxpayers are excluded.
The taxpayer has no right to change the chosen method until the end of the calendar year. If the taxpayer does not submit the written information or declaration within the stipulated period, the method chosen by the taxpayer in the previous tax year is applied by the tax authority. When a taxpayer starts a new activity during the year, he applies the method indicated in the application for tax accounting.
VAT registration of the taxpayer In Article 158.2 of the Tax Code If it is canceled in the prescribed manner, it will resume its activity Article 218.1.1 of the Tax Code (first above) or may apply to continue as an income tax payer.
In Article 218.1.2 of the Tax Code (second above) in the event that the total amount of the taxable transactions of the above-mentioned persons does not exceed 100,000 manats during the previous 12 calendar months and the taxpayer has been operating in this mode for at least 1 year, he/she may cancel his/her activities at any time. Article 218.1.1 of the Tax Code may apply to continue as an eligible or income tax payer.
Who is a simplified taxpayer?
The following persons are the payers of the simplified tax:
- Article 156 of the Tax Code taking into account the provisions, persons carrying out passenger transportation (also by taxi) on the territory of the Republic of Azerbaijan with motor vehicles they own or use, with the exception of international passenger transportation;
- persons who are operators and sellers of sports betting games, organizers of lotteries and sellers of tickets;
- natural persons who carry out the presentation of non-residential and residential areas in their ownership;
- In Article 220.10 of the Tax Code natural persons who carry out the mentioned types of activities individually. (with the exception of natural persons who employ workers);
- natural persons engaged in the presentation of plots of land in their ownership.
Persons who do not have the right to be simplified taxpayers
The following persons do not have the right to become a simplified tax payer:
- persons who produce goods that must be marked with excise and mandatory marking;
- professional participants of the insurance market, credit institutions, investment funds and their managers, pawnbrokers, persons licensed in the securities market;
- non-state pension funds;
- persons receiving income from royalties and leasing of property;
- natural monopoly subjects determined by the relevant executive authority;
- persons whose fixed assets at the beginning of the year have a residual value of more than 1,000,000 manats;
- public legal entities;
- persons engaged in production activities whose average number of employees (actually employed) during the quarter exceeds 10 persons during the quarter;
- persons who carry out the presentation of goods in the order of wholesale trade activity;
- persons who provide services and perform works, except for services and works performed to persons who are not registered with the tax authority as taxpayers;
- persons engaged in the sale of gold, jewelry made from it and other household products, diamonds (processed, sorted, framed and fixed and unprocessed, unsorted, unframed and unfixed diamonds);
- persons engaged in the sale of fur products;
- persons engaged in activities for which a license is required. (except for persons providing services related to compulsory insurance contracts).
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