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Can the market owner require the leased property to be registered for tax purposes?
Can the market owner require the leased property to be registered for tax purposes?
I am engaged in the wholesale trade of clothing and operate a store in a clothing market. I am registered as a taxpayer, but since I conduct sales by issuing electronic invoices, I have not registered the premises separately or installed a cash register. In October 2025, the owner of the market is requesting that I register the leased premises with the tax authority. Does he have the legal right to make such a demand?
According to the State Tax Service under the Ministry of Economy, based on the requirements of the tax legislation, a taxpayer must be registered both at their place of residence and at the location of their business entity (premises). Failure to register a business entity (premises) with the tax authority results in a financial sanction of 40 AZN for micro-entrepreneurs and 400 AZN for other persons.
Furthermore, according to Article 3.1 of Law No. 98-VIIQD dated December 16, 2024, “On Amendments to the Tax Code of the Republic of Azerbaijan,” provisions concerning market oversight shall come into effect nine months after the adoption of the law. After the law enters into force, except for agricultural product markets and agricultural cooperative markets, when property is leased, the business entity (premises) of the lessee must be registered with the tax authority before they are allowed to operate in the market. Ensuring this is defined as a duty of market owners (or administrators if the market is under management).
Within six months of the law coming into force, market owners (or administrators) must ensure that any business entities (premises) that have not yet been registered are duly registered with the tax authority, and that lessees register their business entity (premises) accordingly.
Additionally, when property is leased and used by the lessee for entrepreneurial activity, a document (certificate) indicating that the business entity (premises) is registered with the tax authority (including the name and TIN of the taxpayer) must be displayed at the entrance of the business entity (premises).
In accordance with the above, it is a legal requirement for market owners (or administrators) to demand that lessees register their business entity (premises) with the tax authority. Therefore, you must register the business premises you have leased in the clothing market with the tax authority and ensure that a certificate displaying the taxpayer's name and TIN is posted at the entrance of the premises.
I am engaged in the wholesale trade of clothing and operate a store in a clothing market. I am registered as a taxpayer, but since I conduct sales by issuing electronic invoices, I have not registered the premises separately or installed a cash register. In October 2025, the owner of the market is requesting that I register the leased premises with the tax authority. Does he have the legal right to make such a demand?
According to the State Tax Service under the Ministry of Economy, based on the requirements of the tax legislation, a taxpayer must be registered both at their place of residence and at the location of their business entity (premises). Failure to register a business entity (premises) with the tax authority results in a financial sanction of 40 AZN for micro-entrepreneurs and 400 AZN for other persons.
Furthermore, according to Article 3.1 of Law No. 98-VIIQD dated December 16, 2024, “On Amendments to the Tax Code of the Republic of Azerbaijan,” provisions concerning market oversight shall come into effect nine months after the adoption of the law. After the law enters into force, except for agricultural product markets and agricultural cooperative markets, when property is leased, the business entity (premises) of the lessee must be registered with the tax authority before they are allowed to operate in the market. Ensuring this is defined as a duty of market owners (or administrators if the market is under management).
Within six months of the law coming into force, market owners (or administrators) must ensure that any business entities (premises) that have not yet been registered are duly registered with the tax authority, and that lessees register their business entity (premises) accordingly.
Additionally, when property is leased and used by the lessee for entrepreneurial activity, a document (certificate) indicating that the business entity (premises) is registered with the tax authority (including the name and TIN of the taxpayer) must be displayed at the entrance of the business entity (premises).
In accordance with the above, it is a legal requirement for market owners (or administrators) to demand that lessees register their business entity (premises) with the tax authority. Therefore, you must register the business premises you have leased in the clothing market with the tax authority and ensure that a certificate displaying the taxpayer's name and TIN is posted at the entrance of the premises.