en
az
ru
trDoes selling a product to a customer remotely at retail based on an online order create a tax risk?
- Date
- Views 0
Does selling a product to a customer remotely at retail based on an online order create a tax risk?
Can an individual entrepreneur receive payment by bank card from a customer who wants to purchase a product based on an online order? For example, a customer from Aghjabadi sees the product on social media and asks the entrepreneur to hand it over to the driver of a bus travelling to Aghjabadi, while transferring the payment to the entrepreneur’s card. If, after the payment is credited to the card, the entrepreneur registers the corresponding amount through the cash register and sends the receipt together with the product, would this constitute a violation of any provision of the Tax Code?
According to Article 3.1 of the Law of the Republic of Azerbaijan “On Cashless Settlements”, settlements made by transferring funds from the bank account of one person to the bank account of another person, including through payment instruments (payment cards, payment orders, etc.) and payment methods (mobile phones, computers and other equipment), as well as settlements made through payment terminals and by directly depositing cash into the seller’s bank account, are considered cashless settlements.
At the same time, pursuant to Article 16.1.9 of the Tax Code, when cash settlements are made, taxpayers are required to provide the buyer with a receipt, payment document, statement issued by a payment service provider or other strict reporting document, and ensure that the information required by law is reflected in such documents.
Accordingly, in the case of the remote retail sale of a product based on an online order, the legislation does not restrict the registration of the sales transaction through a cash register and the transfer of the product price by the buyer via a payment card to the card linked to the individual entrepreneur’s bank account opened as a taxpayer with a bank providing banking services.
Basis: Article 16 of the Tax Code of the Republic of Azerbaijan and the Law of the Republic of Azerbaijan “On Cashless Settlements”.
Can an individual entrepreneur receive payment by bank card from a customer who wants to purchase a product based on an online order? For example, a customer from Aghjabadi sees the product on social media and asks the entrepreneur to hand it over to the driver of a bus travelling to Aghjabadi, while transferring the payment to the entrepreneur’s card. If, after the payment is credited to the card, the entrepreneur registers the corresponding amount through the cash register and sends the receipt together with the product, would this constitute a violation of any provision of the Tax Code?
According to Article 3.1 of the Law of the Republic of Azerbaijan “On Cashless Settlements”, settlements made by transferring funds from the bank account of one person to the bank account of another person, including through payment instruments (payment cards, payment orders, etc.) and payment methods (mobile phones, computers and other equipment), as well as settlements made through payment terminals and by directly depositing cash into the seller’s bank account, are considered cashless settlements.
At the same time, pursuant to Article 16.1.9 of the Tax Code, when cash settlements are made, taxpayers are required to provide the buyer with a receipt, payment document, statement issued by a payment service provider or other strict reporting document, and ensure that the information required by law is reflected in such documents.
Accordingly, in the case of the remote retail sale of a product based on an online order, the legislation does not restrict the registration of the sales transaction through a cash register and the transfer of the product price by the buyer via a payment card to the card linked to the individual entrepreneur’s bank account opened as a taxpayer with a bank providing banking services.
Basis: Article 16 of the Tax Code of the Republic of Azerbaijan and the Law of the Republic of Azerbaijan “On Cashless Settlements”.