New Simplified Tax Rates Not to Affect Merchants and Restaurateurs with Annual Turnover up to 200,000 Manat

Changes in the Tax Code, introduced on 1 January, will not touch the objects of trade and catering, whose annual turnover is up to 200,000 manat. They will continue to pay the simplified tax at current rates (for the capital of 4%, for the regions - 2% of the turnover).

Azerbaijani Minister of Taxes Fazil Mammadov said in an interview with state news agency AzerTaj, according to the amendments, the payers of the new simplified tax can be legal and physical persons, whose turnover for the year since the beginning is more than 200,000 manat (currently this amount is 120 thousand manat) after which they become VAT payers).

Recall from January 1, simplified tax for traders is 6%, for the representatives of public catering - 8% of turnover.

Regarding the ban on the sale of alcohol for cash the minister noted that the objects of trade have significant potential for sales of this product by means of plastic cards (by November 1, there were 5 million 685 thousand units). In addition, shopping facilities and services have set 84 thousand POS terminals, of which 62% are in Baku. However, the official did not explain how to deal with this on the periphery of the country.

Recall simplified tax payers are exempt from all taxes (excluding land tax). --17D-