Baku, September 30, 2025
In Azerbaijan, many entrepreneurs assume that a signed contract and an electronic invoice are enough to safeguard their deals. But when disputes arise, the reality is often very different.
Courts rarely consider contracts and invoices sufficient proof that a job was completed. Judges usually require a delivery-acceptance act – the official document confirming that goods or services were actually handed over. Without it, even a company in the right risks losing payment.
Legal and tax implications
Economist and honorary auditor Anar Bayramov told Bizim.Media that contracts show intent, and invoices reflect financial transactions – but under the law, fulfillment of obligations must be documented with a delivery-acceptance act.
“If this document is missing, it becomes much harder to prove the case. A company may still lose its money, even if it is correct,” he warned.
The problem also surfaces during tax audits. Azerbaijan’s Tax Code requires not just invoices but also documentation of actual delivery. Otherwise, transactions may be classified as suspicious, triggering penalties and additional obligations.
Why the delivery-acceptance act matters
Despite these requirements, many business owners and accountants ignore the rule, assuming contracts and invoices are enough. Experts say this leaves companies exposed to both financial losses and unfavorable court rulings.
According to Bayramov, every good or service provided should be followed by a delivery-acceptance act. The document must specify the scope of work, its valuation, the date, and signatures from both parties. It should then be archived alongside the initial contract and invoice.
“The delivery-acceptance act is not a formality,” Bayramov stressed. “It is the key legal proof that protects businesses from disputes and secures their right to payment.”
