BAKU, Azerbaijan, December 5. Azerbaijan has approved a privilege in connection with the mechanism of VAT cash-back, Trend reports.
This issue is reflected in the amendment to the Tax Code, which was discussed today at the meeting of Azerbaijan's Milli Majlis (Parliament).
According to the proposed amendment to the Tax Code, the income received under the VAT cash-back mechanism will not be taxed.
Tax on these incomes was also not applied in 2023 and previous years, as the state pursued a policy of stimulation in this area. According to the proposed amendment to the Tax Code, the legal basis for exempting these incomes from tax is being formed.
According to the mechanism of VAT cash-back, 17.5 percent of VAT paid in trade and catering facilities, in medical institutions, and by individuals engaged in private medical practice is refunded in the case of non-cash payments, 5 percent in the case of cash payments, and 30 percent of VAT is refunded in the case of non-cash payments and 5 percent in the case of cash payments in hotels in the territories liberated from Armenian occupation.
After discussion, the amendment was put to vote and approved in the third reading.
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