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Tax Free Rules Approved

Azerbaijani President Ilham Aliyev signed a decree on July 12 approving the Rules for VAT refund (Tax Free) for foreigners and persons without citizenship.

The application of Tax Free system is believed to positively affect tourist flow into the country and ensure competitiveness of the tourism sector.

Foreign citizens can benefit from tax free system if the cost of purchased goods per one e-tax invoice is not less than 300 Azerbaijani manats ($192), including VAT. The goods should be taken out of Azerbaijan's territory within 90 days from the date of purchase, according to the rules earlier approved by the Parliament.

Chairman of the State Customs Committee Aydin Aliyev said that Tax Free system will be used at all checkpoints of Azerbaijan.

"We are fully ready to apply this system. The tax free system in Azerbaijan will first be applied at international airports," he told reporters on July 13.

He said that foreigners doing shopping in Azerbaijan will be refunded VAT in convertible currency while leaving the country.

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

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.

Source: Today.az 

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