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Paying via POS terminal to return 15% VAT to buyer – Azerbaijan’s Taxes Ministry

21 December 2018 10:56 (UTC+04:00)
Paying via POS terminal to return 15% VAT to buyer – Azerbaijan’s Taxes Ministry

By Trend

A buyer will get back 15 percent of VAT when paying via the POS terminal in Azerbaijan, Deputy Minister for Taxes Sahib Alakbarov said, Trend reports with reference to the Vergiler newspaper.

“In case of cash payment, 10 percent of VAT on the cash receipt will be refunded to the buyer,” he noted. “As for the entrepreneur, the total amount of cashless payments in the total turnover will be determined, and a 25 percent benefit will be applied to this amount.”

He added that one of the factors hindering ensuring transparency is the very low level of non-cash payments.

“In order to increase the level of non-cash payments in Azerbaijan, serious changes are needed in this area, because the amount of funds in cash circulation are very large, and this is one of the factors that create conditions for the “shadow economy” to flourish,” he said.

He also reminded that Azerbaijan’s tax system is very young.

“The legislation and the administration system are being improved, extensive incentive measures are being applied, even if this leads to some material losses for the state budget,” he said. “In the end, our economy and the citizens of Azerbaijan will win.”

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