Does an entrepreneur with a turnover of 197,500 manats have to register for VAT?

Does an entrepreneur with a turnover of 197,500 manats have to register for VAT?



According to Article 155.1 of the Tax Code, if the volume of taxable transactions of an entrepreneur exceeds 200,000 manats in any month within a consecutive 12-month period, the entrepreneur is required to register for VAT purposes.

However, when calculating turnover, cashless payments made through POS terminals for retail trade and services provided to persons not registered with the tax authority are taken into account by applying a 0.5 coefficient.

In this case, 50% of the POS turnover of 195,000 manats, i.e. 97,500 manats, is included in the calculation. Together with the 100,000 manats in cash turnover, the total turnover considered for VAT purposes is:

100,000 + 97,500 = 197,500 manats.

Therefore, since the calculated turnover does not exceed the 200,000-manat threshold, there is no obligation to register for VAT.

Nevertheless, entrepreneurs who are not required to register for VAT may voluntarily register for VAT purposes if they wish.

Legal basis: Article 155 of the Tax Code.