Taxation of e-commerce in Azerbaijan can be introduced in 2016 – deputy minister (UPDATE)
Details added (first version posted on 18:15)
Baku, Azerbaijan, Nov. 17
By Azad Hasanli - Trend:
Taxation of e-commerce in Azerbaijan can start already in 2016, First Azerbaijani Deputy Minister of Taxes Natig Amirov said at a press conference dedicated to the results of the ten months of 2015 Nov.17.
He said that the draft law was handed over to the government for consideration two years ago, but in some points so far it was impossible to reach an agreement with the ministry of finance.
At the same time, Amirov said that international experience and technical support of international organizations was used during the preparation of the draft law.
The deputy minister said that the bill is fairly comprehensive.
"Last month, we again submitted it to the government for consideration and we hope that it will be adopted already in 2016," he said.
Earlier, the Ministry of Taxes told Trend that Azerbaijan plans to keep a record of those involved in e-commerce.
The Ministry of Taxes said that the bill does not provide for the creation of a special taxation mechanism.
At the initial stage it is suggested to keep a record of individuals and legal entities involved in e-commerce. In accordance with the current tax legislation, they have to pay value added tax [18 percent].
E-commerce market volume amounted to 10.5 million manat in Azerbaijan as of January-October 2015, the Azerbaijani State Statistics Committee said.
The total volume of retail e-commerce in Azerbaijan increased by 1.9 times compared to the same period of 2014.
Some 91.9 percent of goods purchased in electronic form by the population of Azerbaijan in January-October 2015 accounted for legal entities and 8.1 percent - physical entities.
Non-food items accounted for 96.3 percent of e-commerce market turnover.