Types of activities for which the installation of a cash register is required or not required

Types of activities for which the installation of a cash register is required or not required



Taxpayers conducting cash settlements within the territory of the Republic of Azerbaijan carry out these transactions using registered cash register machines (CRMs) in accordance with rules set by the competent executive authority. A cash register machine (CRM) is electronic equipment or a computer system capable of collecting, processing, storing, and transmitting information via the Internet about cash payments made at the time goods (works, services) are provided.

So, in which types of activities is the use of cash register machines mandatory? Expert Fidan Bayramova explains.

In the Republic of Azerbaijan, the use of cash register machines is mandatory for certain types of activities. CRMs are an important tool for both tax authorities and business owners. They ensure that cash receipts are properly recorded and entered into the state tax system. By using CRMs, taxes are accurately calculated, each sale is properly registered—ensuring transparency for businesses and increasing trust for customers. Additionally, CRMs simplify accounting tasks and provide accurate income data. Compliance with relevant requirements for each type of activity both protects taxpayers’ rights and ensures the state’s financial transparency.

According to Article 16.1.8 of the Tax Code, persons engaged in the following activities must carry out cash settlements using cash register machines:

- retail trade;
- public catering services;
- accommodation facilities such as hotels and similar establishments;
- medical institutions and individuals engaged in private medical practice;
- barber shops, beauty salons, and cosmetology centers.

Note that the list of accommodation establishments (hotels and similar facilities) is approved by Cabinet of Ministers Decision № 575 dated 21 December 2017. According to this Decision, the types of accommodation facilities include:

1. Hotels and motels
2. Sanatoriums
3. Boarding houses
4. Congress centers with accommodation
5. Holiday homes
6. Recreation bases
7. Recreation centres
8. Guest houses
9. Health camps
10. Sports camps
11. Hunting (fishing) lodges
12. Tourist bases
13. Tourist houses
14. Campsites
15. Residential houses (villas, cottages, summer houses, etc.)
16. Apartments (rooms) in multi‑unit buildings
17. Hostels
18. Mountain refuges
19. Children’s wellness camps

According to Article 50.8 of the Tax Code, the following information must be shown on CRM receipts:

- taxpayer’s name;
- taxpayer identification number (TIN/VÖEN);
- date and time the receipt was issued;
- name of the business entity (establishment), its tax registration code, and address;
- name of the goods or service (work), unit of measurement, quantity, unit price, and total amount;
- number of receipts issued during the current shift and the receipt number;
- brand and factory number of the CRM;
- fiscal mode sign of the CRM;
- quick product code;
- amount paid;
- advance payment amount (for advance receipts);
- amount refunded to the customer (in case of overpayment);
- amount due in credit sales (remaining balance);
- form and method of payment (cash, cashless, bonus, gift card);
- type of receipt (sale, return, cancellation, advance payment, credit sale payment);
- registration number of the CRM fiscal mechanism;
- for return, cancellation, and advance payment receipts—the fiscal signs (unique identifiers) of related receipts;
- for credit sale payment receipts—the amount due, payment sequence number, and fiscal signs (unique identifiers);
- for fuel station sales on the basis of fuel cards/tickets—the state registration number of the buyer’s vehicle.

Example 1: Suppose the “XX” phone store engaged in retail sale of mobile phones serves dozens of customers daily. Customers pay in cash, by bank card, and other methods. The store records each sale via CRM: the cashier confirms the transaction on the CRM and issues a receipt to the customer. Each payment is properly logged, and due to system integration, the data is immediately transmitted to the tax authority. CRM use ensures transparency: the customer receives a receipt confirming the correct price and payment, which can be used to defend their rights in any future disputes.

Activities for which installing a CRM is not required:

- sale of newspapers and magazines (when such sales account for more than 50% of total turnover);
- sale of agricultural products at markets, fairs, and in mobile trade;
- retail trade from stalls, vehicles, and trailers in markets and other public trading areas;
- sale of securities, lottery tickets, sports betting, and e-sports betting tickets;
- operations of utility service providers (electricity, gas, water, hot water supply, and central heating);
- individual barber services.

Example 2: A farmer growing and selling fresh fruits at a market. If the activity is solely the sale of agricultural products, CRM use is not required. For instance, selling 250 kg of quince at 4 AZN per kg yields a total of 1000 AZN—but since the products are sold directly by the producer, CRM registration is not mandatory.

Finally, according to Article 58.7 of the Tax Code, financial penalties are applied for failure to use a CRM, issuing non-compliant receipts, or using faulty CRMs:

- first violation in a calendar year: 1000 AZN;
- second violation: 3000 AZN;
- third and subsequent violations: 6000 AZN.