BAKU, Azerbaijan, Jan.6
By Zeyni Jafarov - Trend:
The Azerbaijani Tax Code was subjected to amendments due to a significant change in economic conditions as a result of the COVID-19 pandemic spreading and a temporary tax regime was imposed in 2020 in order to improve the financial situation of taxpayers operating in a number of areas, Trend reports referring to the State Tax Service under the Ministry of Economy of Azerbaijan.
The temporary tax regime also covered the catering sector, which suffered from the pandemic. Simplified taxpayers working in this area were provided with a discount of 50 percent of the tax amount.
Besides, the deadline for submitting applications for the use of the right to be payers of simplified tax by persons engaged in public catering, registered for value-added tax (VAT), had been extended until September 1, 2020. On the basis of the submitted application, these persons act as payers of the simplified tax, and the provisions of the temporary tax regime are applied to the goods and services provided. The temporary tax regime expired on January 1, 2021.
According to the service, if persons who are VAT payers and carry out activities in the field of public catering, after the expiration of this period, continue their activity on registration for VAT, they are obliged to provide the tax authority with information in the prescribed form about the goods remaining at their disposal.
The State Tax Service approved and posted on its official website the information form ‘on goods acquired by persons operating in the public catering sector and being simplified taxpayers, while continuing their activity within VAT registration after January 1, 2021’, to be submitted by such taxpayers.
The purpose of providing the information is to ensure non-imposing of VAT on the simplified taxpayers when they submit the goods, for which VAT isn’t refundable, that is, to relieve them from the burden of paying VAT twice for the same goods. Subsequent submission of the goods shown in the form, including their write-off as part of public catering services, won’t be considered within VAT-imposable turnover.
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