BAKU, Azerbaijan, January 10. A number of imported technical products are exempted from VAT in Azerbaijan, the State Tax Service told Trend.
According to the service, machinery, technological equipment, and units imported by residents of industrial or technological parks and taxpayers who received an investment incentive document in Azerbaijan are exempted from VAT paid on imports for the construction of production facilities, research and development work, and manufacturing under the Tax Code of Azerbaijan.
“Previously, taxpayers outside this category paid large amounts of taxes to the customs authorities on the same transactions, which led to difficulties in their financial situation. With the latest changes in legislation aimed at eliminating these circumstances, stimulating investment in the country, imported fixed assets are exempt from VAT,” the service said.
“Import of fixed assets, the list of which will be approved by the Cabinet of Ministers, won’t be subject to VAT on a permanent basis. These incentive benefits will apply to the import of fixed assets, including processing and manufacturing equipment, as well as other fixed assets imported by industries that are a priority for the country's economy. Thus, due to savings in working capital, economic growth is expected in the relevant industries," added the service.