- VAT Registration Threshold Increase: Azerbaijan’s State Tax Service has effectively raised the VAT registration threshold for businesses engaged in cashless transactions in retail trade and public services to encourage the use of cashless payments.
- New Calculation Method: The threshold is determined by counting only 50% of the value of cashless transactions processed through point-of-sale (POS) terminals, while cash transactions are considered in full, effectively doubling the threshold for cashless-only businesses from AZN 200,000 to AZN 400,000.
- Unchanged Threshold for Cash Transactions: Businesses that conduct only cash transactions will see their VAT registration threshold remain at AZN 200,000, maintaining the previous standard for cash-based operations.
Source Orbitax
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