For­eign­ers to en­joy tax-free in coun­try

Azer News - - Front Page - By Amina Nazarli ECON­OMY, PAGE 2

Soon, while com­ing to Azer­bai­jan on a tourist visa, tourists can take ad­van­tage of Azer­bai­jan's tax- free sys­tem. Tax-free shop­ping used in many coun­tries will soon be fully avail­able in Azer­bai­jan af­ter the adop­tion of the law in the Par­lia­ment.

Tax-free in Azer­bai­jan will give for­eign­ers an op­por­tu­nity to get a re­fund of VAT af­ter re­turn­ing home.

This sys­tem will make shop­ping in Azer­bai­jan more af­ford­able and at­trac­tive for for­eign­ers.

Deputy Min­is­ter for Taxes Sahib Alak­barov said that cur­rently the sys­tem is ap­plied in test mode.

“The Taxes Min­istry and the Fi­nance Min­istry for a long time have been work­ing on the in­tro­duc­tion of tax-free in Azer­bai­jan. The prepara­tory work has been fi­nal­ized and the nec­es­sary doc­u­ments pre­pared and sub­mit­ted to the rel­e­vant au­thor­i­ties. Test mode is un­der­way for sev­eral days. I be­lieve that in the near fu­ture af­ter the adop­tion of the rel­e­vant law by the Par­lia­ment, we will start a full-fledged ap­pli­ca­tion of the sys­tem,” Alak­barov em­pha­sized.

For now, more than 70 shops in the coun­try and Baku’s Hey­dar Aliyev In­ter­na­tional Air­port ap­ply tax-free. Soon the sys­tem is ex­pected to op­er­ate in the coun­try’s other air­ports in­clud­ing in Lankaran, Nakhchivan, Ganja and Ga­bala.

To use the Tax Free sys­tem in Azer­bai­jan, the value of goods pur­chased at one elec­tronic in­voice shall not be less than 300 man­ats ($200) in­clud­ing the value added tax (VAT).

The goods should be ex­ported from the coun­try within 90 days of the date of pur­chase. VAT pay­ment is re­turned back only in this pe­riod.

The VAT rate for all goods is set at 18 per­cent in Azer­bai­jan. Thus, 20 per­cent of VAT amount will be de­ducted as the pay­ment for ser­vices, and the other 80 per­cent will be re­funded to the ap­pli­cant.

To ben­e­fit the tax-free ser­vice it is nec­es­sary to buy tax-free goods at spe­cific Tax

Free shops. Then, pass­port is to be pro­duced for fill­ing an elec­tronic tax in­voice. The signed and stamped tax in­voice will in­clude the amount of the paid VAT and its last re­turn date.

When leav­ing the coun­try, a visi­tor should present to air­port cus­toms his elec­tronic tax in­voice to­gether with pass­port. Fi­nally, the cus­tom’s tax in­voice should be pre­sented to an au­tho­rized bank. The re­fund can be made both in cash and non-cash (af­ter 10 days) way.

Tax-free does not ap­ply to the fol­low­ing prod­ucts: ex­cis­able goods; food­stuffs; medicines and med­i­cal equip­ment; items which are of par­tic­u­lar value to the preser­va­tion of cul­tural her­itage and is con­sid­ered the coun­try's cul­tural and his­tor­i­cal value; prod­ucts, the sale of which is ex­empt from VAT in the coun­try; goods which re­quires a li­cense for ex­port; frame­less, raw or un­graded pre­cious stones; pre­cious met­als in the form of in­gots; goods ex­ported from Azer­bai­jan with­out ac­com­pa­ni­ment; ve­hi­cles and spare parts; goods ex­ported by mail ser­vice or In­ter­net.

The sys­tem is not ap­plied for Azer­bai­jani cit­i­zens, per­sons un­der 14 years, state­less per­sons and for­eign­ers who have ob­tained a per­mit for tem­po­rary or per­ma­nent res­i­dence in Azer­bai­jan or get a work per­mit for paid em­ploy­ment as well as per­sons who are crew mem­bers of Air Trans­port, per­form­ing di­rect du­ties.

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