Is a taxpayer engaged in sand and gravel extraction required to submit a mining tax return?

Is a taxpayer engaged in sand and gravel extraction required to submit a mining tax return?



The individual’s main activity is 0812102 — crushing and grinding of stone, sand and gravel, while the additional activity is 0812101 — extraction of sand and gravel for industrial and construction purposes. The taxpayer is subject to a 2% simplified tax. Is the entrepreneur additionally required to submit a mining tax return every month?

The State Tax Service under the Ministry of Economy has stated that, pursuant to Article 214 of the Tax Code, individuals and enterprises extracting minerals from the subsoil within the territory of the Republic of Azerbaijan are liable for mining tax.

The reporting period for mining tax is a calendar month. The return must be submitted to the tax authority no later than the 20th day of the month following the reporting month, and the calculated tax must be paid to the state budget.

In response to the inquiry, it was stated that since the taxpayer engages in sand and gravel extraction as an additional activity, they are required to submit a mining tax return each month and pay the calculated tax to the state budget.

Legal basis: Articles 214 and 217 of the Tax Code.