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USAID assists Azerbaijan in implementing fiscal control on e-commerce

Business Materials 30 December 2010 21:19 (UTC +04:00)

Azerbaijan, Baku, Dec. 30 / Trend I.Khalilova /

The U.S. Agency for International Development (USAID) has identified new priorities as part of its program on improving and supporting the implementation of legislation on e-commerce in Azerbaijan.

The Azerbaijani Taxes Ministry reported that the main task was to create the perfect law that meets international standards and the country's internal conditions in the taxation of e-commerce transactions.

"To introduce best practices and exchange views on improving legislation in this area, USAID sent to Azerbaijan a delegation headed by international expert Craig Blakely," the ministry said.

The taxes imposed on e-commerce were reflected in the Taxes Ministry's strategic plan to improve tax legislation and administration in 2009-2012, approved by the Taxes Minister. In this regard, instructions were given to develop proposals for developing legislative framework for the introduction of VAT in e-commerce. Work is also underway on the development of proposals for to organize fiscal control over e-commerce based on the study of international experience.

In EU countries, VAT is imposed on e-commerce as well as standard operations. The taxation of e-commerce is regulated by rules on distance selling. In this case, the VAT rate is determined by the rate applicable in the country where the purchaser lives.

Principles governing the taxation of e-commerce are also provided in OECD's Ottawa agreement adopted in 1998.

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