VAT Portal
Enterprise

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A b o u tA

The tax legislation of the Republic of Azerbaijan is being continuously improved with an aim to support businesses to operate more transparently and responsibly by establishing a more innovative and efficient fiscal environment. As part of these efforts, the Ministry of Taxes of the Republic Azerbaijan introduced the Electronic Tax Invoices (eVHF) in January 2010, followed by the introduction of the Electronic Invoices (eQF) in April 2017.

These specific areas of an electronic workflow are vulnerable to human error and demand excessive human resources in daily operations. Initially, the VAT Portal Enterprise covered operations with the Electronic Tax Invoices (eVHF) and was later updated to cover operations with the Electronic Invoices (eQF), as well. Increased flexibility of the VAT Portal Enterprise allows for easy integration with all the market-available ERP systems.

VAT Portal Enterprise includes two core & two optional modules

C o r e

VAT Out

Processes the outgoing invoices

VAT In

Processes the incoming invoices

O p t i o n a l

VAT Pay

Allows automation for payment of VAT from depository accounts of incoming invoices

VAT Claim

Allows automation of claiming done VAT payments back

VAT Out

The “Out” module handles the portal owner’s outgoing invoices for goods provided or services rendered. Workflow for this module includes the following:

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  1. Creation of the Electronic Invoices (eQF), based on invoices created in the client’s ERP system.
  2. Submitting these invoices to the e-taxes system.
  3. Returning them to the ERP system with unique identification numbers created by the e-taxes system.
  4. The portal performs daily monitoring of the status of the Electronic Invoices (eQF), submitted to the e-taxes system.
  5. Generates update reports on acceptance, rejection or adjustment of invoices.
  6. After receiving acceptance from the counter-agent, Electronic Tax Invoices (eVHF) are created by the e-taxes system and uploaded to the VAT Portal for approval.
  7. After approval, the Electronic Tax Invoices (eVHF) with unique identification numbers are submitted to the e-taxes system for the counter-agent’s consideration.

VAT In

The “In” module handles the portal owner’s incoming invoices for goods or services received. Work flow for this module includes the followingz

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  1. The portal monitors daily incoming Electronic Invoices (eQF) for the client’s review
  2. The client’s revisions and acceptances, rejections or holds for adjustment (law imposes 5-day limit for either of these actions, the Electronic Invoices (eQF) will be granted acceptance status if none is performed)
  3. The Electronic Invoices (eQF) with relevant status are returned to sender
  4. Based on returned Electronic Invoices (eQF), the Electronic Tax Invoices (eVHF) are downloaded and submitted for payment
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VAT Pay

The “Pay” Module works solely with the payment of Value Added Taxes for goods and services received, using the client’s Depository Account for VAT at the e-taxes system of the Ministry of Taxes. The module is capable of monitoring existing invoices in the client’s ERP system and allows full or partial payment of outstanding invoices.:

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VAT Claim

The “Claim” Module allows users to claim all the Value Added Tax payments, made by the client through the VAT Pay Module and may also include payments of VAT for imported goods, made to the Customs.:

U s e c a s eU

Benefits of using the VAT Portal for daily business activities

All provided figures are based on real-life examples, reflecting outcomes of using the VAT Portal by the existing company, processing 600-700 electronic invoices per business day

Human resources, allocated for processing electronic invoices decreased from 16 to 2 people.

162

Average processing time for one batch of electronic invoices in the e-taxes system decreased from 2 hours to less than 5 minutes.

5 min2 h

Average error count during the processing of one batch of electronic invoices in the e-taxes system from every 3-rd invoice in the package to 0.

30

Incoming electronic invoices have a 5-day legal limit to be approved by the receiving company and, if no action is taken, the e-taxes system automatically grants “approved” status to the invoice and the customer is forced to pay.

With the VAT Portal, all incoming invoices are automatically sent to the responsible persons and daily reminders are sent out to spur the review process and assure that invoices are processed within the set time limits.

Want to automate your manual paperwork and process a large amount of invoices with ease?

Send request and our specialists contact you within one workday to discuss more detailed what kind of VAT Portal solution can fit your business.

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