According to Article 13.2.82 of the Tax Code, risky taxpayers and persons conducting risky transactions are determined by the decision of the Cabinet of Ministers dated July 28, 2020. Thus, there are many restrictions under the Tax Code for risky taxpayers and persons conducting risky transactions.

The criteria for a risky taxpayer are as follows.

2.1.2. if it is discovered that the taxpayer is conducting non-commodity transactions within the framework of tax control measures;

For example, if a taxpayer does not have goods in stock or does not have goods sold on the basis of EQ, he is included in the group of risky taxpayers.

2.1.3. in the absence of a warehouse (including a leased warehouse) or other economic entity (object) registered with the tax authority of an importer, producer or a person carrying out non-import trade activities, or with the area of a registered warehouse or other economic entity (object). or in case of discrepancy in the volume of purchased goods (TIN if the customer is a taxpayer, TIN if the customer is a taxpayer, name, surname, patronymic and FIN if the customer is an individual) and the order for each customer except for cases when information on the amount is submitted to the tax authority);

For example, a taxpayer is engaged in production or trade by importing goods from a foreign country. However, according to this, there is no warehouse or office or no warehouse space in the volume of goods imported (produced).

2. 1.4. if it is revealed that goods obtained by the taxpayer and not conforming to the type of activity (activities) (except for office supplies, inventory and other similar assets acquired by the taxpayer for use in his economic activity) are submitted without documentation during tax control;

For example, a taxpayer is considered a risky taxpayer if he buys goods that do not correspond to the type of activity (but not for personal use). For example, if a taxpayer is engaged in health care and sells construction materials.

2.1.5. the volume of goods imported or purchased by the taxpayer for the purpose of sale for the last 6 months (depending on the seasonal nature of the goods, as well as in cases ordered in advance and provided for delivery within the period specified in the contract); at least 3 times more than the turnover;

For example, a taxpayer is considered a risky taxpayer if the volume of goods purchased (or purchased in GB) in the last 6 months is 3 times the volume of goods provided (sold) in the last 6 months. For example, if he bought goods worth AZN 30,000 in the last 6 months If it is less than AZN 10,000, it is considered a risky taxpayer.

2. 1.6. a legal entity in which the natural person who is a risky taxpayer defined by sub-items 2.1.1-2.1.5 of these Criteria is the head or founder of the executive body;

2.1.7. a legal entity established or headed by the head or founder of the executive body of a legal entity that is a risky taxpayer defined by sub-items 2.1.1-2.1.5 of these Criteria;

2.1.8. individuals who are the head of the executive body of more than five legal entities and legal entities in which they are the head of the executive body.

The criteria for risky tax transactions are as follows:

1.1. if it is found that the electronic invoices submitted by taxpayers show different types of goods than the types of goods purchased or imported;

For example: when a taxpayer buys goods A and sells goods B.

1.2. when it is discovered that taxpayers supply goods in excess of the volume of goods purchased or imported (in respect of goods already supplied in excess).

For example, a taxpayer is considered a risky taxpayer if he sells more goods than he buys