BAKU, Azerbaijan, Aug.25
By Sadraddin Aghjayev - Trend:
The return of part of the VAT contributes to the promotion of non-cash payments among consumers in Azerbaijan, the Ministry of Economy told Trend on Aug.25.
“In accordance with article 165.5 of the Tax Code of Azerbaijan, part of the VAT paid by individuals for goods (except for oil and gas products) purchased from persons engaged in retail trade or public catering throughout the territory of Azerbaijan must be refunded to consumers,” the ministry said.
"The refund amount is 15 percent for non-cash payments and 10 percent for cash. A high percentage of reimbursement for non-cash payments encourages individuals to give preference to non-cash payments. To return part of the VAT, consumers must demand checks during purchases.”
The ministry also noted that the country’s tax legislation envisions sanctions for refusing to conduct cashless payments.
“Since January 1, 2020, fines in the amount of 1,000 manat ($588) have been applied to the taxpayers in case of non-installation of POS terminals at the facilities, in which the installation is mandatory, and in case of refusing from accepting cashless payments at the facilities in which the POS terminal has been installed if such facts were detected for the first time, 3,000 manat ($1,764) - for the second time and 6,000 manat ($3,529) - for the third and more times,” reminded the ministry.