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Is VAT withheld from advance? - ANSWER OF AN EXPERT

11.10.2019,13:00


October 11, Fineko/abc.az. In some cases, when companies pay taxes, they do not know that the advance they give to the employee has been attracted to VAT, and therefore there are misunderstandings in many cases.

ABC.AZ reports that expert economist Emin Sattarov expressed his opinion on the occasion.

Confirming that VAT was withheld from the advance, the expert noted that the attraction of the advance in VAT is regulated by Article 166.2 of the Tax Code. According to Sattarov, prior to certain operations, the company receives certain amounts: "The attraction of this amount to VAT and payment of this amount to the budget is reflected in the Tax Code. I can bring an example. Let’s see, on 28 May the company receives 1,000 manats + 180 manats as advance, and at the end of the month an electronic invoice will be submitted. At the same time, an electronic invoice must be submitted on 1 June. If an electronic invoice is not issued within 5 days, there is a misunderstanding, which is unacceptable. Therefore, an electronic invoice must be submitted no later than 5 days before."

By Elmir Murad