Taxes in Azerbaijan: Excise Tax.

1. taxpayers - excise taxpayers are legal entities and individuals that produce or import excisable goods in the Republic of Azerbaijan. Where goods are produced from raw materials supplied by a customer, the contractor is generally considered the taxpayer. If the parties are related resident persons, the owner of the goods (the customer) may be treated as the taxpayer. 2. tax object - the tax object includes: – release of excisable goods produced in Azerbaijan outside the production premises; – import of excisable goods and their release from customs control; – acquisition of mandatory excise stamps for certain categories of goods (for example, tobacco products and electronic cigarettes). 3. taxable base - the taxable base depends on the type of excisable goods and may be determined: – by quantity (litres, kilograms, units, etc.); – by engine volume for vehicles (cubic centimetres); – by customs value for certain imported goods. 4. taxable period - the taxable period for excise tax is the calendar month. 5. tax rate - excise tax rates vary depending on the type of goods. For many goods produced in Azerbaijan, the rates are established by the Tax Code. For certain imported goods, the rates are determined by the relevant executive authority. For vehicles, excise tax is usually calculated based on engine volume, and in some cases increased coefficients apply depending on age or other criteria. 6. tax calculation procedure - excise tax is generally calculated as the tax rate multiplied by the taxable base. In cases of spoilage, return of goods, or use of excisable goods as raw materials for further production, reduction or credit of excise tax may be available in accordance with the legislation. 7. tax payment procedure and timing - for goods produced in Azerbaijan, excise tax must be paid and the tax return submitted no later than the 20th day of the month following the reporting month. If the taxpayer has outstanding excise liabilities, in certain cases the tax must be paid at the time the taxable transaction occurs. For imported goods, excise tax is collected by customs authorities at the time of customs clearance. For certain goods, excise tax is paid at the moment of acquisition of the mandatory excise stamp.