Azerbaijan, Baku, June 19 / Trend I. Khalilova /
Amendments to the regulations were made to regulate operations conducted via united treasury account upon order of the Azerbaijani Cabinet of Ministers. This account has accumulated incomings from deposit account from VAT since 2008.
Regulations of VAT payment to the state budget from cost of bought goods and services on the basis of tax payers' invoices, accounting on deposit VAT-account, VAT operations, operations on this account on VAT mutual reckoning and transfer to the state budget were approved early 2008.
According to new regulations, these deductions must be returned on an owner's VAT deposit account in case of full or partial liquidation of deal in which VAT is taken, change of character, failed operation, reduction of prices or change of coordinated compensation on any other reason, except for specifying of taxable turnover if return of VAT is requested.
Results of united treasury account introduction to accumulate VAT are effective. The Azerbaijani government decided to join incomings from VAT on deposit accounts of the ministry of taxes and the state customs committee to solve problems of Azerbaijani importers on compensation of this tax on goods delivered to the country lat year.
Separate deposit account was opened in treasury of the state customs committee. Earlier the committee passed taxes given by importers to the state budget via old system. It did not allow making reckoning of this tax from sub-account of this tax payer on operations inside the country.
All incomings from VAT are transferred on deposit account while purchasing goods, operations and services to organizations. Participation of the state is lower than 50 percent. Payers having tax debts to the state budget were to pay VAT. This order was introduced from January 1, 2008.
As of early 2008 there were 10,000 VAT payers. But after introduction of deposit account, number of real working people increased 12,000.
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