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How much cash payment can a taxpayer make under the new law?
How much cash payment can a taxpayer make under the new law?
As we informed earlier, the new law amending the "Law on Cashless Payments" came into effect on January 1, 2025. The update is explained by tax expert Khayal Feyzullayev.
According to the change made in clause 3.3 of the "Law on Cashless Payments", VAT payers and taxpayers engaged in public catering whose turnover for the previous 12 months exceeds 200,000 AZN can make cash payments up to 2% of the VAT-inclusive turnover of the previous month, but not exceeding 50,000 AZN.
After the change, clause 3.3 of the "Law on Cashless Payments" is stated as follows: "Considering the provisions of Article 3.5 of this Law, VAT-registered taxpayers and taxpayers engaged in trade and/or public catering with turnover exceeding 200,000 AZN in any month of the consecutive 12-month period, may make cash payments in the current month up to 2% of the turnover of goods, works, and services provided in the previous month (including VAT), while other taxpayers may make cash payments only for transactions exceeding 15,000 AZN."
If the 2% of the VAT-inclusive turnover of the previous month is less than 30,000 AZN, the cash payment limit for the current month remains at 30,000 AZN.
Example 1: If a VAT taxpayer has a turnover of 1,800,000 AZN in November, the cash payment limit for December is 36,000 AZN:
1,800,000 × 2% = 36,000 AZN.
As mentioned, the cash payment limit for such taxpayers can be up to 50,000 AZN.
Example 2: Let's say the turnover of a taxpayer for the previous month was 2,600,000 AZN (including VAT). 2% of this turnover equals 52,000 AZN:
2,600,000 × 2% = 52,000 AZN.
However, this taxpayer can only make a cash payment of up to 50,000 AZN.
If the 2% of the VAT-inclusive turnover is less than 30,000 AZN, the cash payment limit for the current month remains at 30,000 AZN.
Example 3: A taxpayer’s turnover for the previous month was 140,000 AZN (including VAT). 2% of this turnover equals 2,800 AZN:
140,000 × 2% = 2,800 AZN.
However, this taxpayer can still make a cash payment of up to 30,000 AZN in the current month.
For other taxpayers, the rules remain the same, meaning they can only make cash payments up to 15,000 AZN.
As we informed earlier, the new law amending the "Law on Cashless Payments" came into effect on January 1, 2025. The update is explained by tax expert Khayal Feyzullayev.
According to the change made in clause 3.3 of the "Law on Cashless Payments", VAT payers and taxpayers engaged in public catering whose turnover for the previous 12 months exceeds 200,000 AZN can make cash payments up to 2% of the VAT-inclusive turnover of the previous month, but not exceeding 50,000 AZN.
After the change, clause 3.3 of the "Law on Cashless Payments" is stated as follows: "Considering the provisions of Article 3.5 of this Law, VAT-registered taxpayers and taxpayers engaged in trade and/or public catering with turnover exceeding 200,000 AZN in any month of the consecutive 12-month period, may make cash payments in the current month up to 2% of the turnover of goods, works, and services provided in the previous month (including VAT), while other taxpayers may make cash payments only for transactions exceeding 15,000 AZN."
If the 2% of the VAT-inclusive turnover of the previous month is less than 30,000 AZN, the cash payment limit for the current month remains at 30,000 AZN.
Example 1: If a VAT taxpayer has a turnover of 1,800,000 AZN in November, the cash payment limit for December is 36,000 AZN:
1,800,000 × 2% = 36,000 AZN.
As mentioned, the cash payment limit for such taxpayers can be up to 50,000 AZN.
Example 2: Let's say the turnover of a taxpayer for the previous month was 2,600,000 AZN (including VAT). 2% of this turnover equals 52,000 AZN:
2,600,000 × 2% = 52,000 AZN.
However, this taxpayer can only make a cash payment of up to 50,000 AZN.
If the 2% of the VAT-inclusive turnover is less than 30,000 AZN, the cash payment limit for the current month remains at 30,000 AZN.
Example 3: A taxpayer’s turnover for the previous month was 140,000 AZN (including VAT). 2% of this turnover equals 2,800 AZN:
140,000 × 2% = 2,800 AZN.
However, this taxpayer can still make a cash payment of up to 30,000 AZN in the current month.
For other taxpayers, the rules remain the same, meaning they can only make cash payments up to 15,000 AZN.