- The time of VAT transactions for certain types of activities has been changed.
- One of the important changes made to the Tax Code for the improvement of tax administration is the change in the timing of VAT transactions for certain types of activities.
- According to the current version of the Tax Code until January 1, 2024, the time of VAT transactions was calculated when the taxpayer received cash funds for the goods (works and services) provided, and in non-cash payments, when the funds were credited to their bank account.
- In sectors where the use of cash registers is required, in addition to the POS terminal receipt, a cash register receipt should also be provided to the buyers.
- The time it takes for non-cash payments to be credited to the taxpayer’s bank account can take several days, so the timing of cash register receipts and the crediting of funds to the account coincided with different reporting periods, creating difficulties for taxpayers in accounting.
- To eliminate this difficulty, changes have been made to the Tax Code.
- According to the changes, for activities where cash registers are required, such as retail trade, public catering, hotels and other similar establishments, medical institutions and individuals engaged in private medical practice, barbershops, beauty salons, and cosmetic centers, the date of cash register receipt is considered as the time of VAT transactions.
Source: taxes.gov.az
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
