Azerbaijan launches tax free system (UPDATE)

Details added (first version posted on 13:04)

Baku, Azerbaijan, June 24

By Elchin Mehdiyev, Maksim Tsurkov – Trend:

Azerbaijan’s parliament has approved the amendments to the country’s Tax Code, launching a tax free system, under which the goods purchased in the country’s territory by foreigners and stateless persons will be exempted from VAT.

Tax free is a mechanism of refunding the VAT paid by foreign citizens during purchase of the goods not meant for production or commercial needs.

During the Azerbaijani parliament’s plenary session, Chairman of the parliament’s Committee on economic policy, industry and entrepreneurship Ziya Samadzade said the aim of launching tax free system is the organization and promotion of the acquisition of goods and products by foreigners in Azerbaijan’s territory, to attract tourists and increase turnover.

It is expected that the amount returned on the tax free system (VAT) will be compensated by profit taxes against the background of the growth in the country’s trade and economic sphere, he added.

Foreign citizens can benefit from tax free system, if the cost of purchased goods per one e-tax invoice is not less than 300 Azerbaijani manats, including VAT. The goods should be taken out of Azerbaijan’s territory within 90 days from the date of purchase.

Standard VAT rate in Azerbaijan is 18 percent. Regardless of the transfer method, foreign citizens will be refunded the amount of VAT paid for the purchased goods after withholding 20 percent service fee.

How to benefit from Tax Free?

To benefit from Tax Free system, a customer must shop at Tax Free labeled shops. Customers can refund the VAT paid for the goods they purchased at Tax Free labeled shops during their departure at the airport.

While purchasing goods at Tax Free labeled shop customers need to inform a salesperson about the intention to benefit from Tax Free, show a passport confirming citizenship, and have the salesperson to fill in the electronic tax invoice enabling VAT refund. The salesperson, upon filling in the passport details, will provide the customer with 2 copies of signed and stamped e-tax invoice. The e-tax invoice, along with other information, will contain the amount of paid VAT, as well as the expiry date of VAT refund.

While departing from Azerbaijan, it is necessary to present purchased goods and e-tax invoice along with a passport to the customs checkpoint located at the airport. Customs staff will certify the e-tax invoice with a stamp and return it back to the customer after making relevant notes on it.

As the last step, customers need to present the e-tax invoice given by the customs checkpoint to the correspondent bank. They can receive their refund on foreign or local currency according to chosen method as follows: 1) Cash - immediately after presenting necessary document to the bank 2) Noncash - Within 10 working days from the date of submission, to the bank, of their bank card details to which customers wish to receive the refund.

Subscribe to Trend in Google News! Subscribe
USAID and Startup Georgia support launching of coal enterprise
USAID and Startup Georgia support launching of coal enterprise
Uzbekistan discloses volume of grape export to Azerbaijan for 9M2021
Uzbekistan discloses volume of grape export to Azerbaijan for 9M2021
Kazakhstan increases petroleum oil exports to France
Kazakhstan increases petroleum oil exports to France
Loading Bars
Latest
USAID and Startup Georgia support launching of coal enterprise
Russia calls for adherence to statements contributing to unblocking of all transport links in S.Caucasus - MFA
Uzbekistan plans to hold meeting on accession to WTO
Azerbaijani Naval Forces hold competition for title of "Best Ships Division" (VIDEO)
Independent Franco-German financial services group considering projects in Uzbekistan
Russia’s Tatneft to repair hundreds of oil wells in Turkmenistan
Turkmenistan discovers new gas fields on Caspian Sea coast
SOCAR increases number of gas filling stations in Romania (PHOTO)
U.S. economy slows sharply in third quarter
Grain clusters, farmers look to sell wheat at market prices in Uzbekistan
Russia is open for cooperation on energy security, climate change — Putin
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,420 more COVID-19 cases, 1,358 recoveries
Uzbekistan, Tajikistan approve agreement on transit of dangerous goods
Iran to build power transmission line in Turkmenistan’s Mary
India seeks vaccine loans from ADB, AIIB
Uzbekistan considering to sign new agreement with Gazprom
Let COP26 be COP of actions, not just promises and pledges: India at UN
Azerbaijan's Kapital Bank ready to co-op with startups
Uzbekistan shares electric car import stats for 9M2021
NATO Special Rep appreciates Azerbaijan’s support to NATO in Afghanistan
Uzbekistan discloses volume of grape export to Azerbaijan for 9M2021
Kazakhstan, Huawei sign MoU on extending ICT co-op
Georgia reveals volume of its foreign debt to Azerbaijan
Uzbekistan, Russia eye increase of supply of agricultural products by 2030
Indo-Pacific is a "Fact Of Life": S Jaishankar
Oman approves Covaxin shots for travel without quarantine
SOCAR Turkey’s sales down year-on-year
Kazakhstan, Russia resume negotiations on Khvalynsk, Imashev fields
Kazakhstan’s national postal operator to buy spares via tender
Turkmen officials to discuss TAPI project in Kabul
SOCAR Turkey sees increase in assets
Kazakhstan completes repair of Pavlodar oil chemistry refinery ahead of schedule
Azerbaijan allows administration of fourth dose of COVID-19 vaccine
Pasha Bank is ready to support new projects on developing Azerbaijan's startup ecosystem - board member
Kazakhstan increases petroleum oil exports to France
Turkmenistan, Iran expand bilateral relations
Uzbekistan to subsidize difference in average gas price
Merck raises full-year profit target after cancer drug sales help Q3 beat
Nar supports publication of book on veteran teachers
Renesas buys Israeli Wi-Fi chipmaker Celeno for $315m
Turkey receives positive signals from Armenia – Turkish defense minister
Indian forex reserves surge by $58.38 bn in H1
Qatar targets 25% cut in greenhouse gas emissions by 2030 under climate plan
Kazakhstan's economy to grow faster than in other EAEU states - EDB expectations
Georgia to keeps tight monetary policy – NBG
India, Sri Lanka and Maldives hold joint exercise on maritime security
Kazakhstan boosts manufacturing volume of gold
Indian Govt looks to revive tourism sector as jab drive gathers steam
Canadian company to invest in exploration of gold deposits in Uzbekistan
Turkish company talks plans for crop, livestock production in Azerbaijan's Karabakh
21 subject olympiad winners enter Baku Higher Oil School
IRENEX shares data on sales of Iran’s NIOPDC at energy exchange
Bahar Azadi gold coin price again falling in Iran
Azerbaijan’s 9M2021 imports of Turkish chemical products increase
Kazakhstan to build capacious renewable energy facilities
PM Modi reaffirms India’s focus on free & open Indo-Pacific
Iran reveals COVID-19 data for October 28
Chief Financial Officer of Azerbaijan's Bravo supermarket chain talks profit prospects
Pension savings in Kazakhstan increase
Iran's Bistoon TPP boosts electricity generation
Romania plays very important role in Azerbaijan-NATO cooperation plan - Azerbaijani president
Konkan Shakti 2021: India, UK take part in maiden bilateral tri-service exercise
Georgian public foreign debt on the rise
During second Karabakh war, we felt support of people of Kyrgyzstan - President Ilham Aliyev
Turkey occupies very important place in international arena today - Azerbaijani President
EBRD talks details of putting out former uranium mining sites in Uzbekistan
Indian-origin Anita Anand is Canada's new Defence Minister as PM Trudeau reshuffles Cabinet
Kazakhstan reports decrease in volume of money transfers
Azerbaijan's Barda city commemorates victims of Armenian aggression during second Karabakh war (PHOTO)
Russia’s Gazprombank projects Azerbaijan’s refinancing rate level
Iran’s Shahid Tondgooyan Petrochemical Company reaches increase in production
Armenia ready to begin delimitation and demarcation of borders with Azerbaijan
Azerbaijani President congratulates Turkish counterpart
Saipem announces time of returning EBITDA to pre-COVID level
Iran shares amount of needed money for construction of roads, bridges in Khuzestan Province
Iran reveals volume of trade turnover via border terminals in Sistan & Baluchestan Province
Saipem reveals revenue forecasts for 2H 2021
Turkey acting jointly with Azerbaijan regarding normalization of relations with Armenia - FM
Saipem sees significant increase in revenues
Turkey reveals number of ships docking at Tekirdag port in 9M2021
Armenia lagged behind Azerbaijan in armaments issue – Armenian president
Azerbaijan talks ongoing work to restore houses damaged from Armenian shelling during Second Karabakh War - Trend TV (PHOTO)
Ryanair vows 5-day refund turnaround after COVID criticism
Hungary talks on measures to diversify gas supply routes
Hungary’s gas reservoirs 86% full, well above EU average
Investment projects in Turkmen oil and gas fields in Caspian Sea discussed at int'l conference
BSTDB ready to support Azerbaijan to meet emission commitments under Paris agreement (Exclusive)
Bank Keshavarzi Iran sees increase in loans issued for purchase of agricultural machinery
SOCAR’s STAR Refinery boosts crude imports
Turkmenistan Airlines simplifies clearance of int’l cargo transportation
Turkmenistan, Danish Haldor Topsoe to co-op in ammonia, methanol production
Azerbaijan sees significant growth in investment in capital market
Iran increases exports through Bilasuvar border checkpoint
Remains of two people found in Azerbaijan's liberated Aghdam - Prosecutor General's Office
Azerbaijan to discuss change of state duties
Iran announces amount of currency sold at NIMA exchange rate
Kazakh gas producing company opens tender to attract designing services
Iran allocates financial aid to support maritime industries
President Ilham Aliyev receives credentials of incoming Romanian ambassador (PHOTO/VIDEO)
All news