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Can a person who provides photo, audio-video services on an individual basis be a VAT payer?
Can a person who provides photo, audio-video services on an individual basis be a VAT payer?
I am engaged in individual photo, audio-video services and pay tax on a fixed receipt basis. I would like to know whether I lose my right to be a fixed receipt payer for the electronic invoices I submit based on the services I provide to individuals and legal entities registered as a taxpayer or not? Do I become a VAT payer if the volume of taxable transactions exceeds 200,000 manat in any month(s) of a consecutive 12-month period?
The State Tax Service under the Ministry of Economy stated that individuals who generate income by performing photo activities without employing employees on an individual basis fulfill their tax obligations by receiving a “Receipt on payment of a fixed amount under simplified tax, mandatory state social insurance and mandatory medical insurance.”
Accordingly, these persons must be registered with the tax authority, obtain a TIN, and before starting to carry out this activity, they must voluntarily receive a "Receipt on payment of a fixed amount for simplified tax, mandatory state social insurance and mandatory medical insurance" from the State Tax Service for the next month, quarter, half-year or year. This document is issued no later than 2 business days if the taxpayer applies in writing, and in real time if they apply electronically. When these persons apply in writing to receive a fixed receipt, they attach a payment document confirming the payment of simplified tax, mandatory state social insurance and mandatory medical insurance to their application, and when applying electronically, they make the payment electronically at the time of application.
It is additionally noted that, in accordance with Article 218.5.10 of the Tax Code, persons performing works and providing services (except for works and services provided by persons specified in Articles 218.4.1 and 220.10 of this Code) to persons (population) not registered with the tax authority as taxpayers, are not entitled to be simplified tax payers.
In accordance with Article 218.4.4 of the Tax Code, individuals engaged in the types of activities specified in Article 220.10 of this Code, with the exception of individuals who employ employees during their activities, are considered simplified tax payers.
According to the survey, individuals engaged in the field of photo, audio-video services (except for photo studios) on an individual basis (without employing employees) are necessarily simplified tax payers.
It was stated that, in accordance with Article 155.1 of the Tax Code, persons engaged in entrepreneurial activity and whose taxable transactions in any month(s) of a consecutive 12-month period exceed 200,000 manats, including persons engaged in public catering activities (except for those specified in Articles 218.4.1, 218.4.2 and 218.4.3 of this Code) are obliged to submit an application for registration for VAT purposes within 10 days from the date specified in Article 157.3.1 of this Code.
The point you should pay attention to here is that the volume of taxable transactions exceeds 200,000 manats. The income of persons operating with a fixed receipt is not considered their taxable transactions.
According to the survey, individuals engaged in individual photo, audio-video services (excluding photo studios) (without employing employees) are not required to file an application as VAT payers.
I am engaged in individual photo, audio-video services and pay tax on a fixed receipt basis. I would like to know whether I lose my right to be a fixed receipt payer for the electronic invoices I submit based on the services I provide to individuals and legal entities registered as a taxpayer or not? Do I become a VAT payer if the volume of taxable transactions exceeds 200,000 manat in any month(s) of a consecutive 12-month period?
The State Tax Service under the Ministry of Economy stated that individuals who generate income by performing photo activities without employing employees on an individual basis fulfill their tax obligations by receiving a “Receipt on payment of a fixed amount under simplified tax, mandatory state social insurance and mandatory medical insurance.”
Accordingly, these persons must be registered with the tax authority, obtain a TIN, and before starting to carry out this activity, they must voluntarily receive a "Receipt on payment of a fixed amount for simplified tax, mandatory state social insurance and mandatory medical insurance" from the State Tax Service for the next month, quarter, half-year or year. This document is issued no later than 2 business days if the taxpayer applies in writing, and in real time if they apply electronically. When these persons apply in writing to receive a fixed receipt, they attach a payment document confirming the payment of simplified tax, mandatory state social insurance and mandatory medical insurance to their application, and when applying electronically, they make the payment electronically at the time of application.
It is additionally noted that, in accordance with Article 218.5.10 of the Tax Code, persons performing works and providing services (except for works and services provided by persons specified in Articles 218.4.1 and 220.10 of this Code) to persons (population) not registered with the tax authority as taxpayers, are not entitled to be simplified tax payers.
In accordance with Article 218.4.4 of the Tax Code, individuals engaged in the types of activities specified in Article 220.10 of this Code, with the exception of individuals who employ employees during their activities, are considered simplified tax payers.
According to the survey, individuals engaged in the field of photo, audio-video services (except for photo studios) on an individual basis (without employing employees) are necessarily simplified tax payers.
It was stated that, in accordance with Article 155.1 of the Tax Code, persons engaged in entrepreneurial activity and whose taxable transactions in any month(s) of a consecutive 12-month period exceed 200,000 manats, including persons engaged in public catering activities (except for those specified in Articles 218.4.1, 218.4.2 and 218.4.3 of this Code) are obliged to submit an application for registration for VAT purposes within 10 days from the date specified in Article 157.3.1 of this Code.
The point you should pay attention to here is that the volume of taxable transactions exceeds 200,000 manats. The income of persons operating with a fixed receipt is not considered their taxable transactions.
According to the survey, individuals engaged in individual photo, audio-video services (excluding photo studios) (without employing employees) are not required to file an application as VAT payers.