Opening VAT Deposit Accounts for Customs Bodies to Resolve Problems of Azerbaijani Importers

Business Materials 20 February 2008 14:47 (UTC +04:00)

Azerbaijan, Baku, 20 February /corr. Trend I.Khalilova / To resolve the problems of Azerbaijani importers in paying value added tax (VAT) for commodities imported to the country, the Government of Azerbaijan decided to attach VAT profits to a deposit account of the Taxes Committee and State Customs Committee, a source stated at Azerbaijan's Ministry of Finance.

Due to this, separate deposit accounts will be opened for customs bodies in treasury of the State Customs Committee. Therefore, amendments have been made to the regulations of payment of VAT to the State budget from the cost of commodities and services.

The National Bank of Azerbaijan is in charge of holding the account of banking operations on the deposit account which will receive profits from VAT payments.

However, the State Customs Committee transfers taxes paid by importers to the Public budget via the old system.

"Considering the proposals, we decided to collect incomes in line with the State Customs Committee in separate accounts and attach them to deposit accounts of the Taxes Ministry," the same source stated.

All profits from VAT will be transferred to the deposit account. The VAT rate in Azerbaijan is 18%.