12:23 - 24.11.2025

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November 24, Fineko/abc.az. Starting from 2026, the expansion of the turnover limit for simplified taxation purposes from 200,000 manats to 400,000 manats for non-cash turnover is an important step for both individual entrepreneurs and the economy as a whole.

This change means that more and more micro and small enterprises will be able to stay in the simplified taxation regime to high staff turnover, expand their activities without VAT and additional accounting obligations.

ABC.AZ informs that the statement was made by MP Tahir Mirkishili, who added that this decision will primarily reduce the tax burden and administrative expenses of individuals: "The postponement of the mandatory transition to VAT registration allows them to work without switching to shadow schemes - officially with a non-cash turnover of up to 400 thousand manats. As a result, net profit increases, and psychological and fiscal barriers to business growth weaken. At that, the new limit is also a powerful incentive in terms of stimulating non-cash payments. It is more profitable for an entrepreneur to accept payment by card, via POS, which leads to both a reduction in the shadow economy and an expansion of the resource base of the banking system. As non-cash payments grow, the financial inclusion of citizens, the formation of a credit history, and relations with banks in general are also developing in a positive direction. Indirect positive effects are expected for the consumers themselves. The relatively small tax burden of facilities remaining in the simplified regime may help limit price increases in competitive markets, and in some cases, lower prices. And strengthening the culture of non-cash payments and the habit of demanding receipts further facilitates consumer protection."

According to Mirkishili, at the macroeconomic level, this step is important in terms of reducing the share of the shadow economy, expanding the tax base and increasing transparency. The MP believes that for an entrepreneur whose turnover is currently approaching 200,000 manats and who has faced difficulties, it is now becoming more attractive to remain in the system and work fully officially: "Although in the short term there may be certain losses in VAT revenues, in the medium and long term, the potential for growth in state budget revenues is emerging. by increasing official turnover, non-cash payments, and general economic activity. In general, the increase in the turnover threshold on the simplified taxation system up to 400,000 manats for non-cash transactions means additional opportunities for small entrepreneurs, more transparent and competitive service environment for consumers, and larger non-cash turnover and broader official tax base for the economy. This decision makes Azerbaijan's tax system more competitive both in terms of business development and in terms of transparency and cashless economy."

By Elmir Murad