BAKU, Azerbaijan, April 15. VAT for services and legal actions performed by customs authorities has been abolished in Azerbaijan, Trend reports.
The collection of VAT, provided for by the first paragraph of Decree No. 168 of the Cabinet of Ministers of Azerbaijan dated April 26, 2016, has been cancelled.
According to the decree, the amounts of customs fees are compiled in accordance with Article 231.2 of the Customs Code of Azerbaijan and determine the amounts of customs fees received for services and legal actions performed by the customs authorities.
So, for example, previously the customs fee for clearance of goods worth up to 1,000 manat ($588.2) was 15 manat ($8.8) + VAT at a rate of 18 percent, that is, 2.7 manat ($1.59), and in total a person who imported the goods had to pay 17.7 manat ($10.4).
For goods worth up to 10,000 manat ($5,882), the customs fee is 60 manat ($35.29), and given the VAT of 18 percent, this amount reached 70.8 manat ($41.6). Following cancellation of VAT on services and legal actions performed by the customs authorities, a person who imports goods into Azerbaijan worth, for example, 1,000 manat up to 10,000 manat, will pay only customs fees in the amount of 15 manat ($8.8) and 60 manat, respectively.
From January 1, 2023, based on the proposals of the Accounts Chamber of Azerbaijan, the application of VAT in the amount of 18 percent specifically to customs duties has been suspended. The customs fees themselves will continue to be in force.