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trCan providers of telecommunications equipment maintenance services pay simplified tax?
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Can providers of telecommunications equipment maintenance services pay simplified tax?
I am an individual entrepreneur and provide telecommunications equipment maintenance services to local companies. Currently, I pay 20% tax on my monthly income. My total annual income does not exceed AZN 30,000. Can I become a simplified tax payer at a rate of 2%?
The State Tax Service under the Ministry of Economy stated that, pursuant to Article 218.5.10 of the Tax Code, persons who carry out works and provide services, other than works performed and services provided to persons who are not registered with the tax authority as taxpayers (the general public), do not have the right to be simplified tax payers, except for works and services provided by persons specified in Articles 218.4.1 and 220.10 of the Tax Code.
According to Article 218.6.2 of the Tax Code, notwithstanding the provisions of Article 218.5.10, persons who provide services and perform works for the general public as well as for legal entities and individuals registered with the tax authority as taxpayers have the right to be simplified tax payers if the volume of transactions that must be documented by an electronic invoice during the quarter (including the value of services and works provided to non-resident legal entities and non-resident individuals engaged in entrepreneurial activities on the basis of an invoice) does not exceed 30% of the total volume of transactions related to the provision of services and performance of works, excluding non-operating income.
In response to the inquiry, it was stated that if the income of the taxpayer in question is received exclusively from other taxpayers, and since the individual entrepreneur provides services to another taxpayer, they do not have the right to be a simplified tax payer and must operate as an income tax payer.
Basis: Articles 218.5.10 and 218.6.2 of the Tax Code.
I am an individual entrepreneur and provide telecommunications equipment maintenance services to local companies. Currently, I pay 20% tax on my monthly income. My total annual income does not exceed AZN 30,000. Can I become a simplified tax payer at a rate of 2%?
The State Tax Service under the Ministry of Economy stated that, pursuant to Article 218.5.10 of the Tax Code, persons who carry out works and provide services, other than works performed and services provided to persons who are not registered with the tax authority as taxpayers (the general public), do not have the right to be simplified tax payers, except for works and services provided by persons specified in Articles 218.4.1 and 220.10 of the Tax Code.
According to Article 218.6.2 of the Tax Code, notwithstanding the provisions of Article 218.5.10, persons who provide services and perform works for the general public as well as for legal entities and individuals registered with the tax authority as taxpayers have the right to be simplified tax payers if the volume of transactions that must be documented by an electronic invoice during the quarter (including the value of services and works provided to non-resident legal entities and non-resident individuals engaged in entrepreneurial activities on the basis of an invoice) does not exceed 30% of the total volume of transactions related to the provision of services and performance of works, excluding non-operating income.
In response to the inquiry, it was stated that if the income of the taxpayer in question is received exclusively from other taxpayers, and since the individual entrepreneur provides services to another taxpayer, they do not have the right to be a simplified tax payer and must operate as an income tax payer.
Basis: Articles 218.5.10 and 218.6.2 of the Tax Code.