Azerbaijan: The tax reforms to the VAT system effective from January 1, 2022

On December 29, 2021, the Ministry of Taxes of the Republic of Azerbaijan provided clarification on revisions to the tax legislation.  

The Bill cover provisions on: 

• Establishing taxation regulations for managed foreign corporations operating under the preferential tax regime. 
• VAT-registered taxpayers are required to submit debt-related transactions to the tax authorities. 
• The penalty for submitting false information is 2,000 ADN (1,027 EUR ).
• Setting dates, payment mechanisms, and conditions for electronic submission.
• Sales made by VAT-registered farmers and agricultural services.  

For the wholesale and retail sales of products (local and foreign origin) obtained by individuals by 1 January 2022, VAT should be calculated on the full selling price of the goods.  The legislation entered into force on 1 January 2022. 

Source: taxes.gov.az