PUT AN END TO FRAUD WITH PURCHASE ACTS!
- 2024-12-16
Şamo Nuriyev- Blogs
As we know, according to Article 16.1.11-10 of the Tax Code, a purchase act must be drawn up for goods purchased from individuals not registered with the tax authority.
Also, in accordance with the relevant provisions of the Tax Code, when goods are purchased from individuals not registered with the tax authority, electronic purchase acts must be prepared within 5 days from the date of purchase.
According to the Law on Cashless Settlements, taxpayers can purchase only the goods listed in Article 3.5 from individuals who are not taxpayers, and only in cash.
The taxpayer must comply with the requirements of the Law on Cashless Settlements. On the other hand, taking into account the special provisions of the Tax Code, when selling goods acquired via an electronic purchase act, the cost of the sold goods must be recognized as an expense in accordance with Article 14.6.5 of the Tax Code, or the Conditional Profitability Norm must be applied based on Decision No. 55 of the Cabinet of Ministers.
Currently, there are also fraudsters operating through purchase acts. They artificially create purchase acts on behalf of citizens, thereby generating a fictitious tax burden for the citizen.
So how can this be prevented?
According to the decision of the Cabinet of Ministers dated November 20, 2024, amendments were made to the “Rules for Approval, Application, Registration, and Use of the Electronic Purchase Act” approved by Decision No. 243 of the Cabinet of Ministers of the Republic of Azerbaijan dated July 7, 2020.
Before the amendment, when a taxpayer purchased goods from a citizen, they would draft an "electronic purchase act" in the tax system and confirm it with an enhanced electronic signature. According to the new decision of the Cabinet of Ministers, in addition to the taxpayer, the citizen selling the goods must also confirm the electronic purchase act. Based on the amendment, in the second sentence of clause 2.1 of the Rules, the word "and" is replaced with the phrase: “after being confirmed in the prescribed manner via SMS sent to the mobile number registered in the name of the individual not registered with the tax authority.”
Thus, according to clause 2.1 of the Rules, the taxpayer prepares the electronic purchase act via the Internet Tax Office and, after it is confirmed through an SMS sent to the mobile number registered in the name of the individual not registered with the tax authority, signs and approves it with an enhanced electronic signature.
Example:
A taxpayer purchases goods worth 300 AZN from a non-taxpayer individual. In this case, the taxpayer prepares the document in the tax system. Once the electronic purchase act is ready, it will be sent to the individual for confirmation. The individual must have a mobile number registered in their name. Once the SMS sent to the registered mobile number is confirmed, the taxpayer will be allowed to confirm the document with an electronic signature.
In 2025, there will be a number of important changes to the Tax Code, as we know. Entrepreneurs unaware of these changes and without proper accounting may face penalties. To prevent this, entrust your business to professionals. We provide consultation on proper financial accounting. Contact us to benefit from the consultation!