Official notes need to differentiate VAT rates in Azerbaijan (PHOTO) UPDATE

Business Materials 13 February 2018 14:33 (UTC +04:00)
In Azerbaijan, it is necessary to differentiate the rates of value-added tax (VAT)

Details added (11:07)

Baku, Azerbaijan, Feb.13

By Anvar Mammadov - Trend:

In Azerbaijan, it is necessary to differentiate the rates of value-added tax (VAT), Chairman of the parliamentary committee on economic policy, industry and entrepreneurship Ziyad Samadzade said at a conference on "Taxes. Transparency: Development."

He said that the VAT rates must be differentiated depending on priorities.

"How much it is necessary to set the rates for VAT at the same level for everyone? I think that it is necessary to set priorities and differentiate VAT rates. Different rates can be applied - six, seven, ten percent, and so on," said Samadzade.

Earlier, the Taxes Ministry of Azerbaijan studied the possibilities of differentiation of VAT and developed an appropriate bill. But when submitting the bill, the Ministry faced with discontent of a number of state bodies and structures, as a result of which the document was never adopted. It should be noted that the draft law dealt with differentiation of VAT in various spheres, including, first of all, with regard to medicines.

To date, differentiated VAT rates are applied in several countries around the world. For example, in Europe they are used in the food and light industry, in the sale of children's clothing, goods produced by small and medium-sized businesses.

Azerbaijan has a unified VAT rate of 18 percent.