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Can an individual providing services to a taxpayer be a simplified tax payer?
Can an individual providing services to a taxpayer be a simplified tax payer?
If I provided services to a taxpayer in November 2024 and issued an invoice for 50,000 manats, should I become a taxpayer for income tax from the next quarter? Do I retain the right to be a simplified tax payer in that quarter?
According to the State Tax Service under the Ministry of Economy, based on Article 218.5.10 of the Tax Code, individuals who are not registered with the tax authorities as taxpayers (citizens) are not entitled to be simplified tax payers, except for the cases provided in Articles 218.4.1 and 220.10 of this Code.
According to Article 218.6.2 of the Tax Code, regardless of the provisions of Article 218.5.10, if services are provided or works are carried out for legal entities and physical persons registered with the tax authorities, in addition to providing services or performing works for individuals, and if the volume of transactions that need to be formalized via electronic invoices does not exceed 30% of the total volume of transactions related to providing services and performing works (excluding off-sales income), the individual retains the right to be a simplified tax payer.
Additionally, it is noted that, according to Article 218.7 of the Tax Code, if the conditions specified in Article 218.6.2 are not met, the right to be a simplified tax payer is canceled from the 1st of the month following the reporting quarter.
If I provided services to a taxpayer in November 2024 and issued an invoice for 50,000 manats, should I become a taxpayer for income tax from the next quarter? Do I retain the right to be a simplified tax payer in that quarter?
According to the State Tax Service under the Ministry of Economy, based on Article 218.5.10 of the Tax Code, individuals who are not registered with the tax authorities as taxpayers (citizens) are not entitled to be simplified tax payers, except for the cases provided in Articles 218.4.1 and 220.10 of this Code.
According to Article 218.6.2 of the Tax Code, regardless of the provisions of Article 218.5.10, if services are provided or works are carried out for legal entities and physical persons registered with the tax authorities, in addition to providing services or performing works for individuals, and if the volume of transactions that need to be formalized via electronic invoices does not exceed 30% of the total volume of transactions related to providing services and performing works (excluding off-sales income), the individual retains the right to be a simplified tax payer.
Additionally, it is noted that, according to Article 218.7 of the Tax Code, if the conditions specified in Article 218.6.2 are not met, the right to be a simplified tax payer is canceled from the 1st of the month following the reporting quarter.