Azerbaijan

Risky taxpayers and transaction without substance

A taxpayer is classified as risky if they meet at least one of the following criteria:

1. Insufficient resources for business activities: Providing goods or services that require specific economic resources (facilities, workforce, fixed assets, raw materials, etc.) without having adequate resources or without subcontracting.
2. Transactions involving unverified goods: Selling goods that were not acquired through legally required documents such as e-invoices, purchase acts, or customs declarations.
3. Conducting transactions without substance: Engaging in transactions with the aim of obtaining profit (income) without actually providing goods, works and services.