Regulatory Alerts2023-02-06
Law of the Republic of Azerbaijan on Cashless Settlements
President Ilham Aliyev enacted this legislation to mandate cashless settlements for specified transactions within Azerbaijan, defining permissible payment methods and establishing mandatory electronic transfer thresholds for VAT-registered businesses, salaries, utilities, retail sales, and medical services. The law requires taxpayers with monthly taxable transactions exceeding 200,000 manats to conduct all settlements electronically while granting targeted cash purchase exemptions for agricultural goods and scrap metal. Effective in early 2017, the act grants executive authorities compliance oversight and establishes legal liability for violations to accelerate banking sector development and ensure transaction transparency.
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