Decree of the President of the Republic of Azerbaijan on the implementation of the “ Amendments to the Law of the Republic of Azerbaijan “On Accounting” and on the regulation of some related issues” was published on January 22, 2024. This Decree exactly indicates the effective dates for the implementation of electronic accounting that should be carried out by medium-sized enterprises. In accordance with the Law of the Republic of Azerbaijan “On Accounting” the process should be implemented in the following stages:
- Persons who provides financials services defined by the Tax Code of the Republic of Azerbaijan – from January 1, 2024;
- Persons providing telecommunication services – from April 1, 2024;
- Persons engaged in the sale of oil and gas products at gas stations – from July 1, 2024;
- Sport betting operator – from October 1, 2024;
- All other medium-sized enterprises – from January 1, 2027.
The question may be arisen “what is the criteria of medium-sized entity? “ . The exact criteria for the distribution of micro, small, medium and large business entities was approved by the Cabinet of Ministers of the Republic of Azerbaijan and gives the clear explanation of possible question. According to the mentioned criteria, entrepreneurial entities with a list of employees from 51 to 250 people or the annual income from 3,000,000 to 30,000,000 manats are medium business entities. One point here should be considered that the higher of the “ average number of employees” and “ annual income” criteria is used to define entrepreneur as micro, small, medium or large enterpreneurs.
