Weekly actual topics in Azerbaijan (June 13-17)
Over 30 businessmen ready to work in Azerbaijan’s Masalli industrial district
Over 30 entrepreneurs have expressed interest in working in Azerbaijan's Masalli industrial district which is under construction, the country's Economy Minister Shahin Mustafayev said.
He made the remarks addressing the conference on "Investment promotion: new approaches and priorities" in Baku.
The minister pointed out that the construction work on the territory of Masalli industrial district will start soon.
The infrastructure work on the territory of Neftchala industrial district will be completed by late June, after which the construction of certain factories and plants will start there, according to Mustafayev.
"The total volume of funds to be invested in the Neftchala industrial district at the initial stage will exceed 20 million manats," said the minister.
"We chose eight of 17 projects presented by the businessmen. Their implementation will make its possible to create over 380 jobs," he added.
Moreover, Azerbaijan's Azeurocar and Iran's Iran Khodro company have recently signed a memorandum in accordance with which, cars and spare parts will be manufactured in Neftchala industrial district, said the minister, adding that thereby, 60 percent of the spare parts for cars will be manufactured in Azerbaijan.
Further, the minister noted that the Sumgait Chemical Industrial Park will have new residents soon.
"Seven residents have been registered in the Sumgait Chemical Industrial Park and part of those residents has already started to operate," said the Mustafayev, adding that the eighth resident has recently received the certificate.
Moreover, the work on registering the ninth resident is underway, he said.
The minister also touched upon the measures taken by Azerbaijani government to develop the entrepreneurship in the country. He noted that those measures have already begun to bring positive results.
Azerbaijan testing new Tax Free system
Azerbaijan has introduced the Tax Free system, which is currently in a test mode, the country’s Taxes Ministry said.
Tax free is a mechanism of refunding VAT paid by the foreign citizens during purchase of goods not designed for production or commercial needs.
Foreign citizens can benefit from TAX FREE, if the cost of purchased goods per one e-tax invoice is not less than 300 Azerbaijani manats, including VAT.
The goods should be taken out of Azerbaijan’s territory within 90 days from the date of purchase.
Standard VAT rate in Azerbaijan is 18 percent. Regardless of the transfer method, foreign citizens will be refunded the amount of VAT paid for the purchased goods after withholding 20 percent service fee.
How to benefit from Tax Free?
To benefit from Tax Free system, a customer must shop at TAX FREE labeled shops. Customers can refund the VAT paid for the goods they purchased at TAX FREE labeled shops during their departure at the airport.
While purchasing goods at TAX FREE labeled shop customers need to inform a salesperson about the intention to benefit from TAX FREE, show a passport confirming citizenship, and have the salesperson to fill in the electronic tax invoice enabling VAT refund. The salesperson, upon filling in the passport details, will provide the customer with 2 copies of signed and stamped e-tax invoice. The e-tax invoice, along with other information, will contain the amount of paid VAT, as well as the expiry date of VAT refund.
While departing from Azerbaijan, it is necessary to present purchased goods and e-tax invoice along with a passport to the customs checkpoint located at the airport. Customs staff will certify the e-tax invoice with a stamp and return it back to the customer after making relevant notes on it.
As the last step, customers need to present the e-tax invoice given by the customs checkpoint to the correspondent bank. They can receive their refund on foreign or local currency according to chosen method as follows: 1) Cash - immediately after presenting necessary document to the bank 2) Noncash - Within 10 working days from the date of submission, to the bank, of their bank card details to which customers wish to receive the refund.