Taxes in Azerbaijan: road tax.

1. taxpayers - owners or drivers of motor vehicles registered in foreign countries that enter or transit through the territory of the Republic of Azerbaijan, as well as persons engaged in the production or import of automobile petrol, diesel fuel and liquid gas in the territory of the Republic of Azerbaijan, are road taxpayers. 2. tax object: use of foreign-registered motor vehicles in the territory of Azerbaijan. automobile petrol, diesel fuel and liquid gas produced in Azerbaijan for wholesale distribution or imported into Azerbaijan. 3. taxable base: for foreign vehicles: type of vehicle (passenger car, bus, truck), engine capacity, number of seats and axles, total weight, period of stay in the country and, in certain cases, distance travelled. for fuel: volume of fuel produced or imported, measured in liters. 4. taxable period: for foreign vehicles, the tax is charged upon entry into or exit from the country. for fuel producers, no later than the 20th day of the month following the reporting month. 5. tax rate: for foreign passenger cars, the rate starts from 15 US dollars depending on engine capacity and period of stay and increases as the duration increases. for buses and trucks, rates vary depending on number of seats, number of axles and duration of stay. additional charges apply for heavy and hazardous cargo vehicles (additional tariffs based on weight and axle load). for fuel: a road tax of 0.07 manat per liter is calculated on automobile petrol, diesel and liquid gas produced or imported and is added to the wholesale price. 6. tax calculation procedure: for foreign vehicles, the tax is calculated by customs authorities based on the technical characteristics of the vehicle and its period of stay. for fuel, the road tax is calculated based on production or import volume (liters x 0.07 manat). additional tariffs for heavy and hazardous cargo are added to the base tax amount. 7. tax payment procedure and timing: for foreign vehicles, the road tax is collected at the customs border upon entry or exit and transferred to the state budget. fuel producers calculate the tax monthly and pay it to the state budget by submitting a tax return no later than the 20th day of the following month. note: in 2025–2026, in certain cases (combined rail-to-road transportation), foreign freight vehicles are exempt from road tax. road tax applies in two main areas: use of foreign-registered vehicles in Azerbaijan. production and import of fuel. in practice, the road tax on fuel is included in the fuel price and is indirectly paid by the final consumer.