Azeri Taxes Ministry to Study Possibility of Liquidating VAT

Business Materials 6 February 2007 14:13 (UTC +04:00)

The Taxes Ministry of Azerbaijan intends to do research regarding the possibilities of liquidating value added tax (VAT) and replacing it with a tax from sale.

Russia also intends to use such practices in the near future, Trend reports referring to Akif Musayev, the Chief of Department for Strategic Researches and Tax Polity of the Taxes Ministry of Azerbaijan.

According to him, such a system of taxation had been applied in Azerbaijan earlier, but presently activating it is inexpedient due to plans of integration into the European Union.

Musayev considers that since the adoption of the Tax Code in 2001, work has been carried out in the direction of improving VAT.

Currently we may discover problems in the VAT payment system because we have a complete legislative base and program support. It allows for the revealing of deviating from paying VAT, Musayev said.

As a result of work carried out, nearly 5,000 VAT payers have been taken of the list in 2006 due to violations in this area.