Azerbaijan, Baku / Trend corr U. Ismayilova / The VAT-accounts system will be introduced by 2008, Azerbaijani Tax Minister, Fazil Mammadov, said on 25 May.
The proposal on VAT-accounts was put forward three years ago in order to improve the VAT administration system.
"Final development of the system needs time in light of the many technical issues, as banking system and working capital will be involved," the Minister noted.
Introduction of the VAT-accounts system will enable an increase in incomings to the public budget by 30-50%. At present the VAT rate in Azerbaijan is 18%.
The Minister noted that check variant was being developed as alternative. "In the next two to three months, the projects will be submitted to the parliament for approval. VAT-accounts will be introduced in 2008," he said.
In 2001-2005 tax-payers evaded VAT taxes in the amount of AZN 3.4bln through fraud invoices. During this period the state public budget of Azerbaijan lost AZN 626.4mln of VAT incomes. The VAT incomes going to the budget in 2007 are expected to make up AZN 580mln.