Taxes in Azerbaijan: Value-Added Tax (VAT).

1. taxpayers - VAT taxpayers are persons who are registered for VAT purposes or who are required to register. Businesses must register for VAT if: the value of their taxable transactions exceeds 200,000 manats within any consecutive 12-month period; or the value of a single taxable transaction exceeds 200,000 manats. Importers of VAT-taxable goods and certain categories of businesses (such as specific construction activities and producers of excisable or mandatory-marking goods) may also qualify as VAT taxpayers. Non-residents providing electronic services to consumers in Azerbaijan may also be subject to VAT obligations. 2. tax object - the tax object includes: supply of goods performance of works provision of services import of goods VAT applies to sales of goods, services, and imports carried out within entrepreneurial activity in Azerbaijan. 3. taxable base - the taxable base is the value of the taxable transaction excluding VAT. It is generally determined based on the amount received or receivable from the customer (excluding VAT but including customs duties and excise taxes, if applicable). For imports, the taxable base is based on the customs value of goods plus applicable customs duties (excluding VAT). 4. taxable period - the taxable period for VAT is the calendar month. VAT is calculated, reported, and paid on a monthly basis. 5. tax rate - the standard tax rate is 18%. Certain transactions are subject to a 0% tax rate (for example, exports and specific international transport services). Some goods and services are exempt from VAT under the Tax Code. 6. tax calculation procedure - VAT payable to the state budget is calculated as: output VAT (VAT charged on sales) minus input VAT (VAT paid on purchases that is creditable) equals VAT payable. The taxpayer pays the net VAT amount after deducting allowable input VAT. 7. tax payment procedure and timing - the VAT return must be filed for each taxable period no later than the 20th day of the following month. VAT due must be paid to the state budget by the same deadline. Import VAT is paid at the time of customs clearance in accordance with customs procedures.