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Is a VAT exemption applied to food products sold by delivery companies?
Is a VAT exemption applied to food products sold by delivery companies?
The 50% Value Added Tax (VAT) relief applied to public catering establishments does not extend to goods sold through delivery services.
The application of the 50% VAT relief for public catering establishments is conditional upon the acceptance of cashless payments via POS terminals integrated into a unified system with cash registers. Therefore, this VAT relief does not apply to cashless payments made through supplier companies such as “Bolt”, “Wolt”, “Yango”, and similar platforms.
Additionally, it should be noted that an electronic invoice must be issued for delivery services provided by supplier companies. Expenses reflected in such e-invoices are considered deductible expenses for tax purposes. It should also be noted that sellers providing products through “Bolt” and “Wolt” must issue cash register receipts corresponding to the full value of the goods. In this process, the supplier company collects the payment from the buyer and transfers it to the seller’s bank account. To prevent double taxation, information on commission-based sales of goods must be regularly submitted to tax authorities. This was stated by Anar Jabbarov, an expert under the Ministry of Economy.
The payment orders issued by supplier companies must also indicate that these amounts are transfers related to commission-based transactions.
The 50% Value Added Tax (VAT) relief applied to public catering establishments does not extend to goods sold through delivery services.
The application of the 50% VAT relief for public catering establishments is conditional upon the acceptance of cashless payments via POS terminals integrated into a unified system with cash registers. Therefore, this VAT relief does not apply to cashless payments made through supplier companies such as “Bolt”, “Wolt”, “Yango”, and similar platforms.
Additionally, it should be noted that an electronic invoice must be issued for delivery services provided by supplier companies. Expenses reflected in such e-invoices are considered deductible expenses for tax purposes. It should also be noted that sellers providing products through “Bolt” and “Wolt” must issue cash register receipts corresponding to the full value of the goods. In this process, the supplier company collects the payment from the buyer and transfers it to the seller’s bank account. To prevent double taxation, information on commission-based sales of goods must be regularly submitted to tax authorities. This was stated by Anar Jabbarov, an expert under the Ministry of Economy.
The payment orders issued by supplier companies must also indicate that these amounts are transfers related to commission-based transactions.