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Can the tax authority fine the entrepreneur if there is no registration information at the entrance of the premises?
Can the tax authority fine the entrepreneur if there is no registration information at the entrance of the premises?
An individual entrepreneur operates a toy retail store in a shopping center. In March 2025, the tax authority conducted an operative tax inspection at the marketplace. During the inspection, a financial sanction was imposed due to the absence of information at the entrance of the rented premises indicating that the premises had been registered with the tax authority. Is this sanction legally justified?
According to the State Tax Service under the Ministry of Economy, under the Law No. 98-VIIQD dated December 16, 2024, titled “On Amendments to the Tax Code of the Republic of Azerbaijan,” except for agricultural product markets and agricultural cooperative markets, if real estate located in marketplaces is used for entrepreneurial activity either by the owners (or administrators, if the market is managed by a third party) or by tenants, then a notice (certificate) must be placed at the entrance of the business entity (premises) showing that it is registered with the tax authority (including the taxpayer's name and Taxpayer Identification Number - TIN). This requirement is established as a duty of taxpayers.
According to Article 58.2-1 of the Tax Code, failure to display such information (certificate) at the entrance of the business premises may result in a financial sanction of 40 manats for micro-entrepreneurs, non-commercial organizations, and individuals not engaged in entrepreneurial activity, and 400 manats for other entities.
Additionally, according to Article 50.1.16 of the Tax Code, except for agricultural product markets and agricultural cooperative markets, the obligation to display information at the entrance of business entities used for entrepreneurial purposes at marketplaces (indicating the name of the taxpayer and TIN) is subject to control through operative tax inspections carried out by the tax authorities.
It should be noted that under Article 3.1 of the same Law No. 98-VIIQD dated December 16, 2024, the provisions concerning the regulation of marketplaces enter into force nine months after the law’s adoption. Therefore, since the operative tax inspection was conducted in March 2025, the individual entrepreneur cannot be subjected to a financial sanction under Article 58.2-1 of the Tax Code for not displaying the required tax registration information (including taxpayer’s name and TIN) at the entrance of the rented premises.
An individual entrepreneur operates a toy retail store in a shopping center. In March 2025, the tax authority conducted an operative tax inspection at the marketplace. During the inspection, a financial sanction was imposed due to the absence of information at the entrance of the rented premises indicating that the premises had been registered with the tax authority. Is this sanction legally justified?
According to the State Tax Service under the Ministry of Economy, under the Law No. 98-VIIQD dated December 16, 2024, titled “On Amendments to the Tax Code of the Republic of Azerbaijan,” except for agricultural product markets and agricultural cooperative markets, if real estate located in marketplaces is used for entrepreneurial activity either by the owners (or administrators, if the market is managed by a third party) or by tenants, then a notice (certificate) must be placed at the entrance of the business entity (premises) showing that it is registered with the tax authority (including the taxpayer's name and Taxpayer Identification Number - TIN). This requirement is established as a duty of taxpayers.
According to Article 58.2-1 of the Tax Code, failure to display such information (certificate) at the entrance of the business premises may result in a financial sanction of 40 manats for micro-entrepreneurs, non-commercial organizations, and individuals not engaged in entrepreneurial activity, and 400 manats for other entities.
Additionally, according to Article 50.1.16 of the Tax Code, except for agricultural product markets and agricultural cooperative markets, the obligation to display information at the entrance of business entities used for entrepreneurial purposes at marketplaces (indicating the name of the taxpayer and TIN) is subject to control through operative tax inspections carried out by the tax authorities.
It should be noted that under Article 3.1 of the same Law No. 98-VIIQD dated December 16, 2024, the provisions concerning the regulation of marketplaces enter into force nine months after the law’s adoption. Therefore, since the operative tax inspection was conducted in March 2025, the individual entrepreneur cannot be subjected to a financial sanction under Article 58.2-1 of the Tax Code for not displaying the required tax registration information (including taxpayer’s name and TIN) at the entrance of the rented premises.