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A new rule regarding the simplified tax is coming — the LIMIT is being DOUBLED
A new rule regarding the simplified tax is coming — the LIMIT is being DOUBLED
The taxpayer’s turnover formed on the basis of non-cash payments made through a POS terminal for retail trade and services provided to individuals not registered with the tax authorities will now be taken into account by applying a coefficient of 0.5. It is proposed to double the current limit of 200,000 manats to 400,000 manats.
According to the draft, when determining the volume of taxable operations, the taxpayer’s turnover formed through non-cash payments via POS terminals for retail trade and services rendered to persons not registered with the tax authority will be considered with a coefficient of 0.5.
It should be noted that individuals who are not registered for VAT purposes and whose taxable operations do not exceed 200,000 manats in any month(s) within any consecutive 12-month period are eligible to be simplified tax payers.
Thus, when determining eligibility for simplified tax status, the taxpayer’s turnover formed through non-cash POS-terminal payments for retail trade and services to unregistered persons will now be included with a coefficient of 0.5.
In other words, although prices of goods, services, and public income have increased since 2016, the simplified tax limit remained at 200,000 manats for any 12-month period. Now it is planned to increase this limit twofold — up to 400,000 manats, which will help prevent tax evasion among small and medium-sized businesses and improve transparency.
The simplified tax for services rendered to the population based on non-cash POS-terminal payments will be calculated at a rate of 6% for a period of three years starting from January 1, 2026. Thus, the simplified tax rate will be reduced from 8% to 6%. Non-cash payments must be made through POS terminals integrated into the unified operational system of cash registers.
These provisions will apply to taxable transactions carried out after January 1, 2026.
The taxpayer’s turnover formed on the basis of non-cash payments made through a POS terminal for retail trade and services provided to individuals not registered with the tax authorities will now be taken into account by applying a coefficient of 0.5. It is proposed to double the current limit of 200,000 manats to 400,000 manats.
According to the draft, when determining the volume of taxable operations, the taxpayer’s turnover formed through non-cash payments via POS terminals for retail trade and services rendered to persons not registered with the tax authority will be considered with a coefficient of 0.5.
It should be noted that individuals who are not registered for VAT purposes and whose taxable operations do not exceed 200,000 manats in any month(s) within any consecutive 12-month period are eligible to be simplified tax payers.
Thus, when determining eligibility for simplified tax status, the taxpayer’s turnover formed through non-cash POS-terminal payments for retail trade and services to unregistered persons will now be included with a coefficient of 0.5.
In other words, although prices of goods, services, and public income have increased since 2016, the simplified tax limit remained at 200,000 manats for any 12-month period. Now it is planned to increase this limit twofold — up to 400,000 manats, which will help prevent tax evasion among small and medium-sized businesses and improve transparency.
The simplified tax for services rendered to the population based on non-cash POS-terminal payments will be calculated at a rate of 6% for a period of three years starting from January 1, 2026. Thus, the simplified tax rate will be reduced from 8% to 6%. Non-cash payments must be made through POS terminals integrated into the unified operational system of cash registers.
These provisions will apply to taxable transactions carried out after January 1, 2026.