Tourists obtain over 1M manats in Azerbaijan via Tax Free system

17:56   17 March 2017    871

Foreign tourists have obtained more than one million manats since July 2016 via the Tax Free system, said Azerbaijan’s Deputy Minister of Taxes Sahib Alakbarov at an event dedicated to the organization of shopping festival in Baku from April 10 to May 10.

“Total cost of goods, for which the value added tax (VAT) was refunded, exceeded 12 million manats,” noted Alakbarov. “All foreign tourists registered 6,863 invoices for refunding of value added tax.”

According to the procedure, in order to use the Tax Free system, the price of goods purchased through a single e-invoice must not be less than 300 manat (including VAT).

The goods must be exported from the territory of Azerbaijan within 90 days from the date of purchase. After the period expires, the amount of VAT paid for the goods, will not be refunded.

The VAT rate on all goods in Azerbaijan is 18 percent. Regardless of the way of transfer, 20 percent will be deducted from the VAT amount as the payment for service, and the rest sum will be refunded.

At present, the Tax Free system does not apply to excisable goods and foodstuffs; medications and medical equipment; products, exempt from VAT in the country; goods which may require an export license; raw or ungraded precious gemstones; precious metal ingots; goods exported from the territory of Azerbaijan in an unaccompanied baggage; vehicles and spare parts; goods exported by mail or through the Internet.

The Tax Free system does not apply to the Azerbaijani citizens, stateless people and foreigners who have received a permit for temporary or permanent residence in the territory of Azerbaijan or get a work permit for paid employment, air transport, as well as maritime transport crew members, who are performing their duties, people under 14 years old.

More about: #Azerbaijan   #Tourism  

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