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Electronic Invoicing in Azerbaijan

Updated: Jul 5

e-Invoicing in Azerbaijan and Melasoft Solution
e-Invoicing in Azerbaijan and Melasoft Solution

In Azerbaijan, the status of electronic invoicing is well-established and mandatory for all taxpayers. This requirement is based on Article 2 of the Tax Code of the Republic of Azerbaijan, which mandates the submission of e-invoices for goods delivered, works done, and services provided in connection with entrepreneurial activities. This initiative aimed to modernize the tax administration system and enhance the efficiency of tax-related processes in the country.


According to the Tax Code, issuing electronic invoices for the provision of goods (works, services) to legal and natural persons engaged in entrepreneurial activities is a duty of the taxpayer. From January 1, 2018, all taxpayers, regardless of their status, must submit an electronic invoice when providing goods (works, services) for business purposes.


The Rules for the application, accounting and use of electronic invoices are determined by Resolution №89 of the Cabinet of Ministers of the Republic of Azerbaijan dated March 14, 2017.


The e-invoice program is available through the Internet Tax Administration, while the user guide can be found in the Help section. Additionally, the e-invoice file format and samples are provided on the Tax Administration’s website.(https://www.taxes.gov.az)


In a significant development, the electronic VAT invoices have been abolished as of 1 January 2020, and electronic delivery notes are the only documents required to be issued by suppliers to their customers when selling goods or providing services or works.


Electronic delivery notes issued by the supplier suffice for a transaction to be recognized and forinput VAT to be reclaimed. Electronic delivery notes must be provided for supplies of goods (services, works) to legal entities and individuals engaged in entrepreneurial activities.

E-delivery notes are transmitted via the web portal of tax authorities at www.e-taxes.gov.az, therefore their pro-forma contents are ready made and cannot be changed by the taxpayer. The taxpayer should only fill in respective fields applicable to his transaction/s and each dispatch of e-delivery note should be authorised by means of so-called Asan Imza mobile signature card.

eFaktura
Asan İmza & Elektron Qaimə-faktura

Therefore, to send electronic invoices, the taxpayer must have an enhanced electronic signature tool (including Easy Signature). Electronic invoices are sent in two ways:


In “online mode” — the taxpayer enters the electronic services section by pressing the “LOG IN” button on the Internet Tax Administration portal. He chooses one of the “Easy Signature” or “e-Signature” sections to be authenticated to the system, and then enters the “e-Receipt” subsection and prepares an electronic invoice online and submits it to another taxpayer.


“Offline mode” — the latest version of the special software (“Electronic Invoice Preparation Software — eFP”) and other necessary programs for drawing up the taxpayer’s electronic invoice and other necessary programs from the subsection “Necessary programs” of the “e-Invoice” section of the Internet Tax Administration downloads to his computer, prepares and packages the required invoices through this program without using the Internet. Then the taxpayer enters the system by selecting the “e-Receipt” subsection from the electronic services section of the Internet Tax Administration using the enhanced electronic signature tool (Easy Signature or Electronic Signature) and uploads the prepared package file to the system using the “Create Package” button. During upload, the system assigns a unique series and numbers to electronic invoices and they fall into the “Draft” folder. Here, appropriate operations can be performed by the user on those electronic invoices. Finally, electronic invoices are signed and sent online individually or in a set. Tax payers who submit a large number of electronic invoices are recommended to use this mode.


Consequently, the e-invoicing system is being implemented by the Azerbaijani Ministry of Taxes and is designed to streamline accounting processes, reduce errors, and promote environmentally friendly practices. Therefore, the implementation of electronic invoices serves to simplify tax administration, more efficient and comprehensive organization of tax control, reduction of tax evasion cases, limitation of paper documentation circulation for taxpayers.


Melasoft e-Invoice Solution for Azerbaijan


Melasoft Solution is an SAP add-on that works within the SAP system and under the control of the client. The solution provides two distinct cockpits for incoming and outgoing invoices. The users can continuously monitor the status of the invoices in government portal and view the documents in different formats. The solution is flexible and can easily be adapted to different operational requirements. Also using the outputs, the solution can be improved, and new capabilities can easily be adapted. Different authorizations can be defined to users and hence different operations can be assigned to different employees. All operations are logged and can be viewed when necessary. In addition to these features, the solution can be modified according to requirements of the customers.


As for the Azerbaijan e-invoicing solution, it is as follows.

Azerbaijan E-Invoicing System
New Invoice on SAP Add-On

Multiple companies in many countries use the unique, efficient and fast Melasoft e-Invoice solution. There are many reasons why we are highly preferred. The most important of these is that we can offer different system architecture alternatives.


Contact us for more information and demo.

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