Around 1,000 VAT Payers Excluded from Registration in Azerbaijan
Azerbaijan, Baku / corr Trend I.Khalilova / Around 1,000 VAT payers were excluded from registration in Azerbaijan in 2007, Zaur Fatizadeh, the head of the Economic Analyze Department and Accounting Department of the Azerbaijani Tax Ministry, said on 14 November. There are about 9,000 VAT payers in Azerbaijan.
The list of payers was placed in the internet web site of the Ministry as peoples, budget organizations and state enterprises, which carry out some operations with them, to avoid getting invoices from them. Financial sanctions are envisaged to impose on enterprises which continue using invoice in stead of the prohibition.
These measures have been held since 2006 due to strengthening of registration of VAT payers, as well as measures in fight against debtors and tax dodgers. The invoices developed by Finance Ministry have been used in Azerbaijan since 1 July 2006.The invoice caused simplification of introduction of accounting and avoid suppression of payments to the State budget.
A single treasury account is planning to introduce from 2008. The payments from the deposit VAT account will be accumulated into treasury account. Therefore, administration of VAT will be implemented through centralized automated informative tax system of Tax Ministry.
The Tax Ministry is interested in decrease of VAT tax rate within the framework of support of entrepreneurship development program. Today, the VAT tax rate stands at 18%. It is planning to decrease rates by 1% per year within three years beginning from 2009 after introduction of VAT-account. The optimal VAT rate made up 14 or 15% in the current economic state of Azerbaijan.
In 2001-2005 through using falsified invoices, the taxpayers hid nearly AZM 3.4 bln from VAT. For the reported period, the State budget of Azerbaijan lost VAT revenue in the amount of AZM 626.4 mln. In 2007 the State budget income from VAR in line with the Taxes Ministry is forecast at the amount of AZN 580 mln.