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Timing of simplified tax return: special points
Timing of simplified tax return: special points
According to Article 221.3 of the Tax Code, simplified tax payers submit a declaration to the tax authorities on the amount of tax payable no later than the 20th of the month following the reporting period and pay the tax to the state budget during that period. So what points should be paid attention to when compiling a declaration? Tax experts clarify the question:
As can be seen from the article, simplified tax payers must submit a quarterly report no later than the 20th of the month following the end of the quarter, as well as pay the tax by that date.
Example 1: The simplified tax payer has formed an income of 3,000, 4,000 and 5,000 manats for the goods (services) provided in January, February and March 2024, respectively. The taxpayer must pay the simplified tax calculated for that quarter no later than April 20. If the tax debt is paid later than that date, then interest is calculated in accordance with Article 59.1 of the Tax Code.
In the event that the taxpayer ceases to operate in connection with some tax returns, he is obliged to submit a declaration within 30 days. However, such a requirement is not established for the simplified tax return.
According to Article 221.3 of the Tax Code, when the taxpayer ceases to operate, as well as when the legal entity that is the taxpayer is liquidated or the activities of an individual entrepreneur are terminated, a declaration must be submitted to the tax authority no later than the period specified in this Code. In this case, the tax period covers the period from the beginning of the reporting period until the day the taxpayer ceases to operate, as well as when the legal entity that is the taxpayer is liquidated or the activities of an individual entrepreneur are terminated.
Example 2: The taxpayer applied to the tax authority with an application for temporary suspension of its activities for a period of 2 years from February 1. In this case, the taxpayer must submit a simplified tax return to the tax authority no later than April 20. The period for this return will cover January 1-31.
The taxpayer should pay attention to some important points regarding the simplified tax return.
First point: The monthly data of the taxpayer in the "Tax calculation" section of the simplified tax return is used by the tax authority as a source of the volume of taxable transactions of that person in any month(s) of a consecutive 12-month period - 200,000 manats.
Example 3: In the simplified tax return submitted by the taxpayer in the 2nd quarter of the current year, the value of the goods submitted for April, May and June was 12,000, 18,000 and 20,000 manats, respectively. The tax authority determines, based on the declaration data submitted for previous periods through the AVIS software, that since the taxpayer submitted goods in the amount of 18,000 manat in May, the volume of taxable transactions in any month(s) of a consecutive 12-month period exceeded 200,000 manat. In this case, the tax authority may serve a notice to the taxpayer that he has lost the right to be a simplified tax payer and that he must be registered as a VAT payer.
Let us recall once again that the Tax Code requires that the volume of taxable transactions in any month(s) of a consecutive 12-month period not exceed 200,000 manat, not for the calendar year (January 1-December 31), but for any consecutive 12 months.
Second point: If, during the reconciliation of the declaration data submitted by the taxpayer with the electronic invoice data, it is determined that the specific weight of goods (services) provided to taxpayers during the quarter exceeds 30 percent, then the right of that person to be a payer of simplified tax is restricted.
Example 4: The taxpayer reported that he provided services in the amount of 20,000 manats for the 1st quarter of 2024. The AVIS system determines that for that quarter the taxpayer submitted an electronic invoice in the amount of 8,000 manats to the counterparty. In this case, the tax authority will provide the taxpayer with information about the loss of the right to be a payer of simplified tax from April 1, 2024. The same approach applies to the goods provided.
Third point: The value of goods (services) submitted by the taxpayer in the simplified tax return should not be less than the amounts of electronic invoices and (or) new generation cash register receipts submitted for that quarter.
Example 5: Although the taxpayer submitted goods in the amount of 20,000 manats for the first quarter of the current year, the AVIS system determines that electronic invoices in the amount of 4,000 manats and new generation cash register receipts in the amount of 17,000 manats were issued during that period. In this case, a cameral discrepancy notice will be submitted by the tax authority.
According to Article 221.3 of the Tax Code, simplified tax payers submit a declaration to the tax authorities on the amount of tax payable no later than the 20th of the month following the reporting period and pay the tax to the state budget during that period. So what points should be paid attention to when compiling a declaration? Tax experts clarify the question:
As can be seen from the article, simplified tax payers must submit a quarterly report no later than the 20th of the month following the end of the quarter, as well as pay the tax by that date.
Example 1: The simplified tax payer has formed an income of 3,000, 4,000 and 5,000 manats for the goods (services) provided in January, February and March 2024, respectively. The taxpayer must pay the simplified tax calculated for that quarter no later than April 20. If the tax debt is paid later than that date, then interest is calculated in accordance with Article 59.1 of the Tax Code.
In the event that the taxpayer ceases to operate in connection with some tax returns, he is obliged to submit a declaration within 30 days. However, such a requirement is not established for the simplified tax return.
According to Article 221.3 of the Tax Code, when the taxpayer ceases to operate, as well as when the legal entity that is the taxpayer is liquidated or the activities of an individual entrepreneur are terminated, a declaration must be submitted to the tax authority no later than the period specified in this Code. In this case, the tax period covers the period from the beginning of the reporting period until the day the taxpayer ceases to operate, as well as when the legal entity that is the taxpayer is liquidated or the activities of an individual entrepreneur are terminated.
Example 2: The taxpayer applied to the tax authority with an application for temporary suspension of its activities for a period of 2 years from February 1. In this case, the taxpayer must submit a simplified tax return to the tax authority no later than April 20. The period for this return will cover January 1-31.
The taxpayer should pay attention to some important points regarding the simplified tax return.
First point: The monthly data of the taxpayer in the "Tax calculation" section of the simplified tax return is used by the tax authority as a source of the volume of taxable transactions of that person in any month(s) of a consecutive 12-month period - 200,000 manats.
Example 3: In the simplified tax return submitted by the taxpayer in the 2nd quarter of the current year, the value of the goods submitted for April, May and June was 12,000, 18,000 and 20,000 manats, respectively. The tax authority determines, based on the declaration data submitted for previous periods through the AVIS software, that since the taxpayer submitted goods in the amount of 18,000 manat in May, the volume of taxable transactions in any month(s) of a consecutive 12-month period exceeded 200,000 manat. In this case, the tax authority may serve a notice to the taxpayer that he has lost the right to be a simplified tax payer and that he must be registered as a VAT payer.
Let us recall once again that the Tax Code requires that the volume of taxable transactions in any month(s) of a consecutive 12-month period not exceed 200,000 manat, not for the calendar year (January 1-December 31), but for any consecutive 12 months.
Second point: If, during the reconciliation of the declaration data submitted by the taxpayer with the electronic invoice data, it is determined that the specific weight of goods (services) provided to taxpayers during the quarter exceeds 30 percent, then the right of that person to be a payer of simplified tax is restricted.
Example 4: The taxpayer reported that he provided services in the amount of 20,000 manats for the 1st quarter of 2024. The AVIS system determines that for that quarter the taxpayer submitted an electronic invoice in the amount of 8,000 manats to the counterparty. In this case, the tax authority will provide the taxpayer with information about the loss of the right to be a payer of simplified tax from April 1, 2024. The same approach applies to the goods provided.
Third point: The value of goods (services) submitted by the taxpayer in the simplified tax return should not be less than the amounts of electronic invoices and (or) new generation cash register receipts submitted for that quarter.
Example 5: Although the taxpayer submitted goods in the amount of 20,000 manats for the first quarter of the current year, the AVIS system determines that electronic invoices in the amount of 4,000 manats and new generation cash register receipts in the amount of 17,000 manats were issued during that period. In this case, a cameral discrepancy notice will be submitted by the tax authority.