Taxes Ministry reveals those engaged in e-commerce

The Taxes Ministry of Taxes revealed 186 Internet users engaged in e-commerce by means of Internet portals and social networks in the first half of 2016 as part of its measures on attracting ecommerce to taxation.

During inspections, the Ministry reported 54 users, who were not registered by fiscal authorities as taxpayers, while 47 users were registered, but have no information about turnover or is very low.

flatun Mammadov, Head of the Main Department on Analysis and Control over Tax Risks of the Ministry told Vergiler newspaper that those who have not been registered in the tax authorities, received notifications, while those who has no trade turnover received relevant requests.

"As a result, the turnover in this category of taxpayers increased by 54.1 percent in the second quarter of 2016, compared to the first quarter, while charges grew by 53.8 percent and revenue raised by 69.1 percent,” Mammadov said.

The head of the department said that now the Ministry is considering status of taxpayers, grouping them in relevant categories.

Strengthening control over ecommerce and services provided on Internet are reflected in the approval of “The direction of reform, which will be held in the tax field in 2016," undersigned by President Ilham Aliyev on August 4.

E-commerce envisages not only online purchase and sale of certain goods but also online-games, e-exchange, downloading of mobile applications, music, films, through the services like iTunes.

Meanwhile, in January-September 2016 the Ministry of Taxes transferred 4.93 billion manats of tax payments to the state budget, and this is 0.2 percent more than it forecasted.

The State Oil Company of Azerbaijan (SOCAR) fulfilled forecast on tax revenues by 100.6 percent, while contracts of PSA type the forecast were implemented by 82 percent.

In non-oil sector the Ministry generated some 3.84 billion manats to the state budget, which is up by 1.7 percent than forecast.

Revenues of Azerbaijan's 2016state budget were approved in the amount of 16.822 billion manats (about $10.879 billion), and expenses in the amount of 18.495 billion manats (about $11.961 billion).