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What tax obligations arise when selling decorative items and souvenirs without being registered for tax purposes?
What tax obligations arise when selling decorative items and souvenirs without being registered for tax purposes?
The State Tax Service under the Ministry of Economy has stated that the activity mentioned in the inquiry is considered entrepreneurial activity. According to Article 33.4 of the Tax Code, an individual conducting entrepreneurial activity without creating a legal entity must submit an application for tax registration to the tax authority before starting the activity, be registered for tax purposes (obtain a TIN), and pay taxes on the income earned to the state budget.
The tax obligations depend on the taxation system selected in the registration application and the taxable items generated, and include the relevant taxes (simplified tax or income tax, VAT).
It is also noted that, according to Article 58.2 of the Tax Code, a financial penalty of 40 manats is applied for failing to register with the tax authority within the period specified in Article 33.4 or for failing to submit an application regarding the place of activity within the period specified in Article 34.3.
The State Tax Service under the Ministry of Economy has stated that the activity mentioned in the inquiry is considered entrepreneurial activity. According to Article 33.4 of the Tax Code, an individual conducting entrepreneurial activity without creating a legal entity must submit an application for tax registration to the tax authority before starting the activity, be registered for tax purposes (obtain a TIN), and pay taxes on the income earned to the state budget.
The tax obligations depend on the taxation system selected in the registration application and the taxable items generated, and include the relevant taxes (simplified tax or income tax, VAT).
It is also noted that, according to Article 58.2 of the Tax Code, a financial penalty of 40 manats is applied for failing to register with the tax authority within the period specified in Article 33.4 or for failing to submit an application regarding the place of activity within the period specified in Article 34.3.