Tax Free system to be applied at all Azerbaijani customs points

Business Materials 17 March 2017 21:01 (UTC +04:00)

Baku, Azerbaijan, Mar. 17

By Azad Hasanli – Trend:

The Tax Free system will be applied at all border customs points of Azerbaijan in the shortest time, Chairman of Azerbaijan’s State Customs Committee Aydin Aliyev told Trend.

“The purpose of the Tax Free system is to ensure sustainability of the work carried out in recent years in the tourism sector and to strengthen the competitiveness of the Azerbaijani economy,” he said. “This system is currently being used at the international airports of the country.”

He noted that 130 countries that apply the value added tax joined the Tax Free system.

“The application of this system will attract foreign tourists to Azerbaijan, these tourists will buy more goods, and this in turn will lead to an increase of the volume of retail trade turnover, stimulation of the manufacture of export-oriented products and at the same time the inflow of foreign currency into the country,” he added.

In order to use the Tax Free system, the price of goods purchased through a single e-invoice must not be less than 300 manats (including VAT).

The goods must be exported from the territory of Azerbaijan within 90 days from the date of purchase. After the period expires, the amount of VAT paid for the goods, will not be refunded.

The VAT rate on all goods in Azerbaijan is 18 percent. Regardless of the way of transfer, 20 percent will be deducted from the VAT amount as the payment for service, and the rest sum will be refunded.

At present, the Tax Free system does not apply to excisable goods and foodstuffs; medications and medical equipment; products, exempt from VAT in the country; goods which may require an export license; raw or ungraded precious gemstones; precious metal ingots; goods exported from the territory of Azerbaijan in an unaccompanied baggage; vehicles and spare parts; goods exported by mail or through the Internet.

The Tax Free system does not apply to the Azerbaijani citizens, stateless people and foreigners who have received a permit for temporary or permanent residence in the territory of Azerbaijan or get a work permit for paid employment, air transport, as well as maritime transport crew members, who are performing their duties, people under 14 years old.