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TAX CODE OF THE REPUBLIC OF TAJIKISTAN SECTION VII. VALUE-ADDED TAX CHAPTER 31. TIME AND PLACE OF THE PERFORMANCE OF A TAXABLE TRANSACTION AND SPECIAL RULES Article 217. Time of the Performance of a Taxable Transaction 1. Except as otherwise provided by this article, a taxable transaction shall take place at the time a VAT invoice is presented for the given transaction. 2. If a VAT invoice is not presented within five days of the deadlines specified under this item, item 1 of this article shall not apply, and a taxable transaction shall take place: 1) at the time of the acceptance, sale, or transfer of goods, the performance of work, or the provision of services; or 2) in the case of the delivery of goods which entails the shipment of the goods, at the time they are shipped. 3. When payment is made before the time indicated in subitems 1) or 2) of item 2 of this article, if a VAT invoice is not presented within five days after payment, items 1 and 2 of this article shall not apply and the taxable transaction shall take place at the time payment is made. 4. For the purposes of item 3 of this article, and with the exception of those cases specified in item 5 of this article, if two or more payments are made for a taxable transaction, each payment shall be treated as being made for a separate transaction in the amount of the payment. 5. If services are provided on a regular or ongoing basis, the provision of services shall be treated as taking place each time at the point that a VAT invoice (invoice for payment) is presented in connection with any part of the transaction, or if payment is made earlier, at the time payment is made for any part of the transaction. In any case, regardless of the other provisions of this article, for the purposes of this item a VAT invoice (invoice for payment) must be presented for each month no later than the 10th of the month immediately following the reporting month. If an invoice (invoice for payment) is not presented within the specified deadline, the provision of services shall be treated as occurring on the last day of the reporting month. 6. In the event of the application of item 3 of Article 206 of this Code, the moment a taxable transaction is performed shall be the moment at which the goods, work, or services start being consumed or used. 7. In those cases referred to under item 4 of Article 206 of this Code, the moment a taxable transaction is completed shall be the moment that goods are delivered, work is performed, or services are provided for employees. 8. The moment a taxable transaction involving the delivery of electricity, thermal power, gas, or water is completed shall be determined in accordance with the rules in effect with respect to the provision of services on a regular or ongoing basis. 9. With respect to taxpayers performing cash basis accounting for the purposes of the profit tax, a taxable transaction shall take place at the moment funds are received for the goods delivered (goods to be delivered), for the work performed (work to be performed), or for the service provided (to be provided). Article 218. Place of the Delivery of Goods 1. If the conditions of delivery call for the transport of goods, delivery shall occur at the place where the transport of the goods begins. In other cases the delivery of goods shall occur at the place of their transfer. 2. The delivery of electricity, thermal power, and gas shall occur at the place where the goods are received. In the event of the export of these goods from the Republic of Tajikistan, it shall be considered that delivery occurs in the Republic of Tajikistan. Article 219. Place of the Performance of Work
or Provision of Services 1) the location of real property, if the work (service) is related directly to this property; 2) the place where the work (service) is actually performed, if it is related to movable property; 3) the place where services are actually performed, if they are provided in the sphere of culture, the arts, education, physical education and sports, or in another similar sphere of activity; 4) the place where transportation actually occurs, if the work (service) is related to this transportation. For the purposes of Article 212 of this Code, such a transaction related to the performance of work or provision of services by a taxpayer outside the Republic of Tajikistan shall be treated as being performed on the territory of the Republic of Tajikistan; 5) the location of a permanent establishment of a purchaser of services, with which (permanent establishment) these services are most closely related. The provisions of this item shall apply to the following services: - transfer of ownership or assignment of patents, licenses, trademarks, copyrights, or other similar rights; - performance of consulting, legal, accounting, engineering, or advertising services, as well as data processing and other similar services; - performance of personnel and staffing services; - leasing of movable property (with the exception of means of transport of transportation enterprises); - performance of the services of an agent who hires a person (an enterprise or an individual) on behalf of a principal party to a contract for the performance of services specified under this subitem; 6) the place where commercial activity is carried out by a person performing work or providing services. 2. In the application of item 1 of this article, a place where work is performed or services are provided that is referred to under more than one subitem of item 1 of this article shall be determined on the basis of whichever subitem appears first. Article 220. Reverse Taxation 1. If a person who is not a resident and has not been registered for VAT purposes in the Republic of Tajikistan provides services or performs work on the territory of the Republic of Tajikistan for a tax agent referred to in item 2 of this article, then for the purposes of this section said performance of work or provision of services shall be subject to taxation in accordance with this article. 2. For the purposes of this article a tax agent shall be any person registered in the Republic of Tajikistan for VAT purposes, and any resident legal entity. 3. In the event of the application of item 1 of this article, a tax agent shall withhold tax from the amount payable to a nonresident. The tax amount shall be determined by applying a positive tax rate in accordance with the provisions of item 1 of Article 224 of this Code to the amount payable to the nonresident after the withholding of tax. 4. If a tax agent is registered for VAT purposes, the tax withheld shall be subject to inclusion in the VAT return for the month in which the transaction was performed, as an amount payable (as an amount assessed). This shall grant the tax agent the right to credit this VAT amount according to the provisions of Article 226 of this Code. 5. If a tax agent is not registered for VAT purposes, he shall be required to pay the withheld tax to the budget following the procedure established by the authorized government body within five days of the day payment is made to a nonresident. 6. In the event of the importation of property belonging to a nonresident for leasing to a tax agent, when collecting the VAT from lease payments in accordance with this article, with the consent of the nonresident owner, a tax agent may request a credit of the VAT paid on the import. In this case the tax agent shall be treated as the taxpayer and shall bear liability for payment of the VAT at the time of the subsequent delivery of the property (excluding its export). Article 221. Time of Import The importation of goods shall take place at the moment the goods are subject to customs duty in accordance with the customs legislation of the Republic of Tajikistan. If goods are exempt from the customs duty, the importation of the goods shall take place at the moment when the customs duty would have been paid if the goods were not exempt from the duty. Article 222. Combined Transactions 1. The delivery of goods, the performance of work, or the provision of services that are of an ancillary nature with respect to the principal delivery of goods, performance of work, or provision of services shall be treated as part of the principal delivery of goods, performance of work, or provision of services. 2. The performance of work or the provision of services that are of an ancillary nature with respect to the importation of goods shall be part of the importation of goods. 3. A taxable transaction that includes independent elements, one or more of which entails the separate delivery of goods, provision of services, or performance of work that are exempt from the VAT shall be treated as consisting of separate transactions. A transaction that is exempt from the VAT and includes independent elements, one or more of which entails the separate delivery of goods, provision of services, or performance of work that are subject to the VAT, shall be treated as consisting of separate transactions. Article 223. Transactions Performed by an Agent 1. The delivery of goods, the performance of work, or the provision of services by a person who is acting as an agent (a trustee) of another person (a principal), on behalf of and on the instruction of this other person (principal), shall be treated as a transaction performed by the principal. 2. Item 1 of this article shall not apply to services provided by an agent to a principal. 3. Item 1 of this article shall not apply to
the delivery of goods to the Republic of Tajikistan by a resident
agent of a person who is not a resident and is not registered
as a payer of the VAT in the Republic of Tajikistan. In this
case the delivery shall be treated as being performed by the
agent for VAT purposes.
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