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What is the penalty for selling jewelry items for cash?
What is the penalty for selling jewelry items for cash?
I am engaged in the sale of jewelry products. According to an amendment to the Tax Code that came into effect last year, payments for the sale of jewelry items exceeding 15,000 AZN must be made in non-cash form only. However, since no penalty was initially stipulated, I occasionally accept cash payments exceeding this threshold. Can the tax authority fine me later for this?
According to the State Tax Service under the Ministry of Economy, based on Article 3.4.15 of the Law “On Non-Cash Settlements,” which came into force on February 1, 2023, payments exceeding 15,000 AZN for the purchase and sale of precious stones, precious metals, as well as items made from precious stones and metals, and cultural products, must be made exclusively via non-cash settlement methods.
Furthermore, effective from January 1, 2025, under the amendment to Article 58.7-1.9 of the Tax Code, liability measures have been introduced for violating the provisions of Articles 3.4.15 and 3.4.16 of the Law “On Non-Cash Settlements.” Specifically, if a person accepts a payment in cash in violation of these provisions, a financial sanction will be applied in the amount of, 10% of the transaction amount for the first violation in a calendar year, 20% for the second violation, and 40% for the third and subsequent violations.
I am engaged in the sale of jewelry products. According to an amendment to the Tax Code that came into effect last year, payments for the sale of jewelry items exceeding 15,000 AZN must be made in non-cash form only. However, since no penalty was initially stipulated, I occasionally accept cash payments exceeding this threshold. Can the tax authority fine me later for this?
According to the State Tax Service under the Ministry of Economy, based on Article 3.4.15 of the Law “On Non-Cash Settlements,” which came into force on February 1, 2023, payments exceeding 15,000 AZN for the purchase and sale of precious stones, precious metals, as well as items made from precious stones and metals, and cultural products, must be made exclusively via non-cash settlement methods.
Furthermore, effective from January 1, 2025, under the amendment to Article 58.7-1.9 of the Tax Code, liability measures have been introduced for violating the provisions of Articles 3.4.15 and 3.4.16 of the Law “On Non-Cash Settlements.” Specifically, if a person accepts a payment in cash in violation of these provisions, a financial sanction will be applied in the amount of, 10% of the transaction amount for the first violation in a calendar year, 20% for the second violation, and 40% for the third and subsequent violations.