Association of Leasing Companies of Azerbaijan Proposes to Apply VAT Mechanism to Leasing Operations
Azerbaijan, Baku /corr. Trend I.Khalilova / The Association of Leasing Companies of Azerbaijan began to prepare suggestions regarding application of a more available VAT mechanism for the leasing activities in the country, said the Chairman of the Association's Executive Board, Azer Mammadov. The Association offers to involve leasing operation through VAT.
However, earlier the Association offered to exempt leasing operations from VAT, but the proposal was not accepted by the Government. "The new mechanism will provide an opportunity to account VAT for the leasing payments and it will be beneficial for both clients and leasing companies," Mammadov said.
The new mechanism will possibly be applied in 2008. Therefore, the Association wishes to join the discussions over the project of amendments and annexes to the Tax Code next year.