AZE.US
Azerbaijan is tightening control over cases in which shops, cafes and other service businesses ask customers to pay by card-to-card transfer instead of using a POS terminal.
The State Tax Service says such cases are being identified during monitoring and operational tax control measures. The issue mainly concerns retail outlets and catering businesses where customers are asked to transfer money directly to a card rather than make a standard cashless payment through a terminal.
For consumers, the difference is not merely technical. When payment is made by card-to-card transfer, the buyer often does not receive either a POS-terminal receipt or a fiscal cash register receipt. That can make it harder to prove the purchase, request a refund or exchange, or defend consumer rights in a dispute.
There is also a tax-related loss for customers. If goods, works or services are purchased from a VAT payer, payment outside the proper POS-terminal system may deprive the consumer of the opportunity to receive a VAT cashback.
The tax authority reminded businesses that in locations where POS terminals are mandatory, failure to install them or refusal to accept cashless payments may result in financial sanctions.
The fine ranges from 1,000 to 6,000 manats, or roughly $590 to $3,530.
The State Tax Service is urging citizens to demand POS-terminal payments when buying goods and services, instead of agreeing to card-to-card transfers.
Business owners are also being reminded that cashless payments must be accepted in line with legal requirements, otherwise a shortcut at the checkout can become an expensive problem.
AZE.US