When can the VAT amount be offset? What is value added tax?

153.1 of the Tax Code. Value added tax (hereinafter - VAT) is explained as the difference between the amount of tax calculated from the taxable turnover and the amount of tax that must be compensated accordingly to the electronic invoices issued in accordance with the provisions of this Code or to the documents showing the payment of VAT on import. if we explain, the difference between the 180 AZN we get when selling the goods for 1000 AZN and the 144 AZN we pay when buying the sold goods (for example 800 AZN*18%=144 AZN) (180-144=36 AZN) is called value added tax.

When is VAT due?

According to Article 166.1 of the Tax Code, the time of the taxable transaction is the time when payment is made for the goods provided. At this time, when paying, the main part of the value of goods, work, service and VAT must be paid. And at the same time, in accordance with VM Article 58.6, a financial sanction of 50% of the VAT amount is applied for failure to pay the VAT amount within 1 business day after the main amount has been paid.

But when is the amount of VAT paid on e-receipt compensated and when is the right to be deprived of compensation?

According to Article 175 of the Civil Code, when paying by e-receipt, the VAT amount must be paid to the VAT deposit account of the other party. The amount of VAT paid during the import of goods is offset during the reporting period. If the amount of VAT is transferred to the other party's bank account or if the payment is made in cash, you are considered to have lost the right to offset VAT.