13:04 - 25.02.2022

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February 25, Fineko/abc.az. The emerging virtual space creates challenges for taxation through methods such as opening a virtual store around the world, providing services, paying with cryptocurrencies, as well as determining income and profit.

ABC.AZ reports that Tair Mirkishili, the chair of the Milli Majlis Committee on Economic Policy, Industry & Entrepreneurship, stated about this at the forum.

He added that the digital economy also challenges the VAT.

"In particular, these challenges are serious for tax policy when goods and services, intangible goods are purchased directly by consumers from founders abroad. This system increases much the number of small businesses. For example, in a classic business, a prerequisite is the presence of local enterprises (shops) to deliver the product to consumers. At that, the taxation policy is directed to the activities of this store. But with the development of information technologies, the ability of consumers to order goods and services directly from non-residents creates serious challenges for the classical tax policy," Mirkishili emphasized.