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E-commerce in Azerbaijan may receive tax benefits

ICT Materials 14 July 2018 14:24 (UTC +04:00)

Baku, Azerbaijan, July 14

By Huseyn Valiyev - Trend:

Tax benefits may be applied to entrepreneurs engaged in e-commerce in Azerbaijan, a source in the Azerbaijani government told Trend.

These benefits may be granted to entrepreneurs at the level of technoparks, according to the source.

“Grant financing of entrepreneurs engaged in e-commerce and providing them with other financial support isn’t excluded, either,” the source noted. “Stimulation of e-payments in e-commerce is also one of the important aspects. In Azerbaijan, no tax is levied on online trade transactions with the use of foreign bank cards. As a result, consumers open accounts in foreign banks and thereby evade taxation for e-commerce in Azerbaijan.”

It is also necessary to carry out reforms in the field of customs control of the purchases imported into Azerbaijan through e-commerce, and the cooperation of various state bodies is important in this case, according to the source.

“The cooperation of a number of state agencies of Azerbaijan will make it possible to form a unified management mechanism that will promote the development of e-commerce and the economy as a whole,” the source noted. “For example, Azerbaijan’s Ministry of Taxes for ensuring tax control should first of all keep a record of all online stores and ensure that they provide tax declaration in accordance with the current legislation. The identification of illegal activity in this sphere should also become one of the main tasks of the ministry. In turn, to prevent tax evasion, Azerbaijan’s State Customs Committee should take the necessary measures of control over the imports and exports of goods ordered online.”

Presently, Azerbaijan’s State Customs Committee is unable to reveal whether a device is imported for private use or for commercial purposes, and this creates an obstacle in the application of customs duties regarding the goods imported into the country, according to the source.

“Cooperation of state agencies should be established at a technological, institutional, administrative and regulatory level,” the source noted. “As for the latter, it is known that the law “On E-Commerce” was adopted in Azerbaijan in 2005. In 2017, attempts were made to update it, but many aspects still need to be studied. Another important document is the national strategy for the development of the information society for 2014-2020. This normative act sets the task before the state departments to develop the internet economy.”

Assignments in this regard are also reflected in the strategic road maps, and in this matter, the role of information technologies is important, according to the source.

“Blockchain technologies, cryptocurrencies, big data, cloud solutions, artificial intelligence, etc. are coming to the forefront,” the source said. “They all have both positive and negative aspects and can become targets for cybercriminals. That’s why it is necessary to regularly conduct both scientific and practical work in the cybersecurity sphere.”

In turn, Azerbaijan’s Ministry of Transport, Communications and High Technologies can ensure that trust certificate is assigned to e-shops, provide the best postal services for the delivery of goods ordered through e-trading platforms, provide e-commerce participants with e-signatures, etc., according to the source.

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