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Is it required to issue an electronic invoice for a car purchased from an individual?
Is it required to issue an electronic invoice for a car purchased from an individual?
“A” LLC, operating under its charter and engaged in car rental activities, has purchased a vehicle from an individual within the scope of its business. The company intends to record this transaction in the system using a purchase act; however, since the individual has a Tax Identification Number (TIN/VÖEN), the system does not allow the preparation of such a document.
However, the vehicle in question is not related to the individual’s business activity under that TIN. The vehicle was acquired for personal use and is currently being sold as a private individual. At the same time, the individual is a simplified tax payer. Issuing an electronic invoice may result in the loss of the individual’s eligibility for the simplified tax regime. Processing a transaction unrelated to entrepreneurial activity through the individual’s TIN is considered inappropriate.
The subject of the sale is a standard passenger vehicle, not a commercial (cargo) vehicle. The value of the vehicle is 120,000 manats, while the individual’s annual turnover is approximately 15,000–20,000 manats. Considering the above, a legal assessment of the situation is requested.
According to the State Tax Service under the Ministry of Economy, pursuant to Article 13.2.8 of the Tax Code, any tangible or intangible property (asset) is considered goods. Under Article 71-2.1 of the Tax Code, taking into account Article 130.1-1, when goods are purchased from persons not registered with the tax authorities, a purchase act (including electronic) must be prepared within 5 days from the date of purchase.
At the same time, under Article 139.2 of the Civil Code, rights to movable property are subject to state registration only in cases предусмотренные by law. According to Article 27 of the Law “On Road Traffic”, all motor vehicles and their trailers must be registered and recorded in accordance with установленным порядком.
Based on the above, in this case, since ownership rights to the vehicle are registered in the state register of movable property, the preparation of an electronic purchase act under Article 71-2 of the Tax Code is not предусмотрено.
Legal basis: Articles 13 and 71-2 of the Tax Code, the Civil Code, and the Law “On Road Traffic”.
“A” LLC, operating under its charter and engaged in car rental activities, has purchased a vehicle from an individual within the scope of its business. The company intends to record this transaction in the system using a purchase act; however, since the individual has a Tax Identification Number (TIN/VÖEN), the system does not allow the preparation of such a document.
However, the vehicle in question is not related to the individual’s business activity under that TIN. The vehicle was acquired for personal use and is currently being sold as a private individual. At the same time, the individual is a simplified tax payer. Issuing an electronic invoice may result in the loss of the individual’s eligibility for the simplified tax regime. Processing a transaction unrelated to entrepreneurial activity through the individual’s TIN is considered inappropriate.
The subject of the sale is a standard passenger vehicle, not a commercial (cargo) vehicle. The value of the vehicle is 120,000 manats, while the individual’s annual turnover is approximately 15,000–20,000 manats. Considering the above, a legal assessment of the situation is requested.
According to the State Tax Service under the Ministry of Economy, pursuant to Article 13.2.8 of the Tax Code, any tangible or intangible property (asset) is considered goods. Under Article 71-2.1 of the Tax Code, taking into account Article 130.1-1, when goods are purchased from persons not registered with the tax authorities, a purchase act (including electronic) must be prepared within 5 days from the date of purchase.
At the same time, under Article 139.2 of the Civil Code, rights to movable property are subject to state registration only in cases предусмотренные by law. According to Article 27 of the Law “On Road Traffic”, all motor vehicles and their trailers must be registered and recorded in accordance with установленным порядком.
Based on the above, in this case, since ownership rights to the vehicle are registered in the state register of movable property, the preparation of an electronic purchase act under Article 71-2 of the Tax Code is not предусмотрено.
Legal basis: Articles 13 and 71-2 of the Tax Code, the Civil Code, and the Law “On Road Traffic”.