Azernews.Az

Starting this year, Azerbaijan will implement a tax-free regime for VAT on medical services provided to foreigners and stateless individuals, Azernews reports.

The amendment to the Tax Code, approved by President Ilham Aliyev, came into effect on January 1. According to the new regulations, VAT paid for medical services by institutions and individuals in private medical practice will be refunded under guidelines set by the relevant executive authority.

This approach aligns with international practices where VAT exemptions or refunds are applied to encourage medical tourism. Countries often use mechanisms such as zero rates, differential rates, or VAT cashback to attract foreign patients.

By introducing a tax-free VAT regime specifically for cashless payments, Azerbaijan aims to stimulate medical tourism and increase the inflow of foreign currency into the country.