VAT in Azerbaijan

1. What is the VAT in Azerbaijan?

The standard VAT rate in Azerbaijan is calculated at 18% for the supply of most goods and services, as well as imports of goods. Some transactions of goods or supply of services such as financial services are exempt from VAT. There are also zero-rated transactions in Azerbaijan in terms of VAT.

2. How can I get a VAT refund in Azerbaijan?

In Azerbaijan, VAT is paid only electronically. In order to receive a VAT refund in Azerbaijan, one must submit an application form. The original invoices are compulsory in order for the claim to be valid. Submission for VAT refund in Azerbaijan is done every three months. If the application is accepted, the VAT refund in Azerbaijan will be received within 45 days after the application.  

3. How can I register for VAT in Azerbaijan?

Company registration for VAT in Azerbaijan is not done separately. The procedure is completed when the company is registered for all taxes with the Ministry of Finance, right after the company has been incorporated and registered in Azerbaijan. It is also compulsory to register for VAT in Azerbaijan if the annual turnover of the company exceeds 150,000 AZN. Tax authorities handle the invoices electronically since 2010 when paper tax invoices were replaced by electronic invoices.

4. How does intra-community VAT work in Azerbaijan?

Azerbaijan is not a member state of the European Union, therefore there is no special tax regime when it comes to VAT applied to transactions between Azerbaijan and member states of the European Union. However, Azerbaijan signed many agreements with the EU and carried a strong relationship with the organisation.