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How are monthly limits for cash operations determined?
How are monthly limits for cash operations determined?
Expert commentary by Anar Bayramov. Prior to the latest amendment, Article 3.3 of the Law “On Cashless Settlements” stipulated—taking into account the provisions of Article 3.5—that payments exceeding AZN 30,000 per calendar month made by VAT-registered taxpayers or by taxpayers engaged in public catering activities with taxable transactions exceeding AZN 200,000 in any month of a consecutive 12-month period, must be carried out exclusively in a cashless form. For other taxpayers, this limit was AZN 15,000 per month.
As can be seen from the article's provisions, the monthly cash payment limit was AZN 30,000 for VAT-registered micro, small, medium, and large enterprises. For taxpayers who were not VAT-registered and whose volume of taxable transactions was below AZN 200,000 in any month of a 12-month period, the cash payment limit was set at AZN 15,000.
Effective from January 1, 2025, a differentiated approach based on turnover has been introduced through amendments to Article 3.3. According to the updated article—considering the provisions of Article 3.5—VAT-registered taxpayers and those engaged in public catering services with turnover exceeding AZN 200,000 in any month of the past 12 months must make payments exceeding 2% of the turnover (including VAT) for goods, works, or services provided in the previous month only through cashless methods. For other taxpayers, the limit of AZN 15,000 per month remains unchanged.
If 2% of the turnover (including VAT) in the previous calendar month is less than AZN 30,000, the maximum monthly cash payment limit is AZN 30,000. If it exceeds AZN 50,000, the maximum allowed is AZN 50,000—the legal upper limit.
The latest amendment introduces two key updates:
The previous month’s turnover (including VAT) will be used to calculate the limit.
The turnover amount will include VAT.
Monthly cash payment limits are now calculated based on the taxpayer’s turnover:
Example 1: The taxpayer’s turnover for the previous month (including VAT) was AZN 1,000,000. 2% of this is AZN 20,000, which is below AZN 30,000. Therefore, the monthly cash payment limit remains AZN 30,000.
Example 2: In February 2025, the taxpayer’s turnover (including VAT) was AZN 2,000,000. 2% of this is AZN 40,000, which is above AZN 30,000 but below AZN 50,000. Thus, the cash payment limit for March will be set at AZN 40,000.
Example 3: If the taxpayer’s turnover (including VAT) for February 2025 is AZN 4,000,000, 2% of that is AZN 80,000. However, since the legal cap is AZN 50,000, the March limit is restricted to AZN 50,000.
Expert commentary by Anar Bayramov. Prior to the latest amendment, Article 3.3 of the Law “On Cashless Settlements” stipulated—taking into account the provisions of Article 3.5—that payments exceeding AZN 30,000 per calendar month made by VAT-registered taxpayers or by taxpayers engaged in public catering activities with taxable transactions exceeding AZN 200,000 in any month of a consecutive 12-month period, must be carried out exclusively in a cashless form. For other taxpayers, this limit was AZN 15,000 per month.
As can be seen from the article's provisions, the monthly cash payment limit was AZN 30,000 for VAT-registered micro, small, medium, and large enterprises. For taxpayers who were not VAT-registered and whose volume of taxable transactions was below AZN 200,000 in any month of a 12-month period, the cash payment limit was set at AZN 15,000.
Effective from January 1, 2025, a differentiated approach based on turnover has been introduced through amendments to Article 3.3. According to the updated article—considering the provisions of Article 3.5—VAT-registered taxpayers and those engaged in public catering services with turnover exceeding AZN 200,000 in any month of the past 12 months must make payments exceeding 2% of the turnover (including VAT) for goods, works, or services provided in the previous month only through cashless methods. For other taxpayers, the limit of AZN 15,000 per month remains unchanged.
If 2% of the turnover (including VAT) in the previous calendar month is less than AZN 30,000, the maximum monthly cash payment limit is AZN 30,000. If it exceeds AZN 50,000, the maximum allowed is AZN 50,000—the legal upper limit.
The latest amendment introduces two key updates:
The previous month’s turnover (including VAT) will be used to calculate the limit.
The turnover amount will include VAT.
Monthly cash payment limits are now calculated based on the taxpayer’s turnover:
Example 1: The taxpayer’s turnover for the previous month (including VAT) was AZN 1,000,000. 2% of this is AZN 20,000, which is below AZN 30,000. Therefore, the monthly cash payment limit remains AZN 30,000.
Example 2: In February 2025, the taxpayer’s turnover (including VAT) was AZN 2,000,000. 2% of this is AZN 40,000, which is above AZN 30,000 but below AZN 50,000. Thus, the cash payment limit for March will be set at AZN 40,000.
Example 3: If the taxpayer’s turnover (including VAT) for February 2025 is AZN 4,000,000, 2% of that is AZN 80,000. However, since the legal cap is AZN 50,000, the March limit is restricted to AZN 50,000.