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The cashless turnover of restaurants and cafés will be taxed at a rate of 6%
The cashless turnover of restaurants and cafés will be taxed at a rate of 6%
In Azerbaijan, for individuals engaged in public catering activities (restaurants, cafés, bars, and other service establishments), it is proposed that when calculating VAT payable to the state budget, 50% of the turnover generated from cashless payments will be excluded from the total VAT-taxable turnover. For simplified tax payers, their cashless turnover will be subject to a simplified tax rate of 6%.
This measure is reflected in the draft of the 2026 state budget package. According to the document, the new regulation is planned as one of the main directions of income policy for 2026–2029, aiming to support entrepreneurship and reduce the tax burden.
In Azerbaijan, for individuals engaged in public catering activities (restaurants, cafés, bars, and other service establishments), it is proposed that when calculating VAT payable to the state budget, 50% of the turnover generated from cashless payments will be excluded from the total VAT-taxable turnover. For simplified tax payers, their cashless turnover will be subject to a simplified tax rate of 6%.
This measure is reflected in the draft of the 2026 state budget package. According to the document, the new regulation is planned as one of the main directions of income policy for 2026–2029, aiming to support entrepreneurship and reduce the tax burden.