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Tax obligations of an individual producing souvenirs and accessories
Tax obligations of an individual producing souvenirs and accessories
What tax obligations arise for a citizen who produces and sells jewelry, souvenirs, clothing, and accessories without registering as a taxpayer?
According to the State Tax Service under the Ministry of Economy, the activity mentioned in the inquiry is considered entrepreneurial activity. Under Article 33.4 of the Tax Code, an individual engaged in entrepreneurial activity without establishing a legal entity must apply to the tax authority for tax registration (obtain a TIN) before commencing business activities and pay taxes to the state budget on the income earned.
Tax obligations depend on the taxation system chosen in the registration application and the taxable objects that arise, and may include simplified tax, income tax, and/or VAT.
It was noted that under Article 58.2 of the Tax Code, failure to register with the tax authority within the period specified in Article 33.4 or to submit an application regarding one’s place of business within the period specified in Article 34.3 results in a financial sanction of 40 manats.
What tax obligations arise for a citizen who produces and sells jewelry, souvenirs, clothing, and accessories without registering as a taxpayer?
According to the State Tax Service under the Ministry of Economy, the activity mentioned in the inquiry is considered entrepreneurial activity. Under Article 33.4 of the Tax Code, an individual engaged in entrepreneurial activity without establishing a legal entity must apply to the tax authority for tax registration (obtain a TIN) before commencing business activities and pay taxes to the state budget on the income earned.
Tax obligations depend on the taxation system chosen in the registration application and the taxable objects that arise, and may include simplified tax, income tax, and/or VAT.
It was noted that under Article 58.2 of the Tax Code, failure to register with the tax authority within the period specified in Article 33.4 or to submit an application regarding one’s place of business within the period specified in Article 34.3 results in a financial sanction of 40 manats.