The National Bank of Azerbaijan is expected to hold a meeting of the commission for the expediency of the introduction of CAT-accounts system, Trend reports. Akif Musayev, the Chief of the Central Department for Tax Policy and Strategic Researches of the Azerbaijan Taxes Ministry, said today that the Presidential Decree on approving alterations and changes to be made to the tax Code fro 2007. The Azerbaijan Taxes Ministry has been commissioned to prepare proposals on introducing VAT-accounts within two months, which is necessary to improve the tax administering system.
The system was expected to be introduced starting from the beginning of 2007, however, during discussions in the Parliament, this point was excluded from the Taxes Code. They considered it expedient to introduce it after the system is worked through thoroughly.
Since the banking system and tax payers turnover means are expected to be involved, it is expedient to first work through all technical issues. The VAT-accounts system envisages collecting VAT to the State Budget and the tax turnover means via separate current accounts of the VAT payers. As Trend reported referring to Azerbaijan Taxes Minister, Fazil Mammadov, the system might be introduced even in the middle of 2007, since the proposal was put forward 3 years ago. Applying the VAT-accounts system will enable to increase VAT receipts to the State Budget by 30-50%. The rate of VAT in Azerbaijan is equal to 18%. In 2001-2005, the tax payers kept $3,4 bln from the tax payments on VAT through applying false accounts-invoices. At the same time, Azerbaijan Budget did not receive VAT returns at the amount of 626,4 mln. AZN.
The Taxes Ministry is expected to collect VAT returns at the level of 580 mln. in the country in 2007.