BAKU, Azerbaijan, October 6. Part of the VAT refund on purchases of alcoholic drinks and cigarettes has been suspended in Azerbaijan since October 1, 2022, Trend reports referring to the State Tax Service of Azerbaijan.
Given the health effects of alcoholic drinks and tobacco use, they are exempted from part of VAT refunds. Along with this, the investigation conducted since the beginning of the VAT refund mechanism established cases of abuse for the purchase and sale of alcoholic beverages and tobacco products.
Following the amendments to the Tax Code of Azerbaijan, the VAT refund mechanism applies to retail trade or public catering activities, as well as to medical services provided by medical institutions from January 1, 2022.