BAKU, Azerbaijan, Nov. 3
By Fidan Babayeva - Trend:
Non-cash payment methods are beneficial not only for entrepreneurs, but also for all citizens in Azerbaijan, the State Tax Service under the Azerbaijani Ministry of Economy told Trend.
According to a representative of the tax service, the benefits are applied when refunding VAT paid for goods (except for oil and gas products) purchased by individuals in a retail or public catering network.
Citizens can get back a part of the paid VAT for goods purchased from business entities that are VAT payers, the State Tax Service said.
According to article 165.5 of the Tax Code, the procedure for the refund of VAT paid by consumers for goods purchases (except for oil and gas products) in retail trade or in public catering facilities in Azerbaijan is determined by the relevant executive authority.
The articles provides for the following advantages: When purchasing goods using bank cards, the consumer is refunded 15 percent of the VAT, and in cash – 10 percent of the VAT.
Thus, the mechanism for refunding part of the VAT optimizes non-cash payments and the use of POS terminals. Non-cash payments are a convenient, prompt and secure method of payment," the state service said.
“Moreover, the existing incentives create an additional incentive to pay using non-cash payments. In this regard, the use of cashless payments is beneficial for everyone,” said the service.