Foreigners to Be Returned 80% of VAT on Purchases in Azerbaijan
In Azerbaijan, the Tax Free system has been introduced in a test mode for the reimbursement of value added tax (VAT - 18%) for foreigners buying goods exported abroad.
As stated in the report of the Ministry of Taxes, the mechanism does not apply to stateless persons and foreigners living in Azerbaijan, members of aircraft crews, travelers on business and children under 14 years.
The new items allow using the electronic bill - invoice provided that the value of goods purchased by a single operation must be not less than 300 AZN, including VAT. In addition, the products must be removed from the country within not later than 90 days from the date of purchase - after that period the amount of VAT will not be refunded.
At the time of the purchase of goods with Tax Free stickers foreigners have to inform the seller about the desire to take advantage of the system, and present their passport. When entering the passport data, the customer is issued a signed and stamped electronic tax invoice in two copies, which contains the amount of the paid VAT and the last date of its return.
At the time of departure from the country the purchased goods and the invoice together with the passport are presented at the customs office at the airport, where the invoice is stamped. After that, it is provided to the authorized bank. The payment is made in foreign or local currency. In cash payment, it is made immediately upon submission of the proper documents to the bank. In non-cash payment, it is made within 10 days after submission of details of the credit card, which should receive payment, to the bank.
The essence of the innovation is that of the amount of VAT for the purchased goods 20% will be deducted as payment for services, and the remaining amount will be refunded to the buyer. The relevance of the test innovation is in the attractiveness of the local commerce to visitors from 37 countries at the European Grand Prix racing competitions Formula 1. --17D-
-
- Economics
- 18 June 2016 12:06
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review