The 2012 worldwide VAT, GST and sales tax guide

Izmir str., 1033
Baku AZ1065
Azerbaijan
A ZERBAIJAN 43
Indirect tax contact
Arzu Hajiyeva +994 (12) 490-7020
Fax: +994 (12) 490-7017
Email: arzu.hajiyeva@az.ey.com
A. At a glance
Name of the tax
Value-added tax (VAT)
Local name
lav Dyr Vergisi (DV)
Date introduced 1 January 1992
European Union (EU)
member state
No
Rates
Standard 18%
Others
0% and exempt
Number format
Tax identification number (TIN)
with 10 digits
Return period
Monthly
Thresholds
Registration
Legal persons
Taxable turnover exceeding
AZN 150,000 for a period of
12 consecutive months
Individuals
Taxable turnover exceeding
AZN 90,000 for a period of
12 consecutive months
Recovery of VAT by
nonestablished businesses No
B. Scope of the tax
VAT applies to the following transactions:
• The supply of goods, works and services performed in
Azerbaijan
• The importation of goods
C. Who is liable
Taxable person. Legal persons and individuals engaged in an
entrepreneurial activity that have taxable turnover during a period
of 12 consecutive months in amounts exceeding AZN 150,000
and AZN 90,000, respectively, must register with the tax authorities
as VAT payers within 10 days following the end of the
12-month period.
Any person registered or to be registered as a VAT payer is considered
a VAT payer. Consequently, a taxpayer is any individual
entrepreneur or legal entity that makes taxable supplies of goods
(works or services) or that conveys goods across the customs
border of Azerbaijan in an amount exceeding the above-mentioned
thresholds.
Group registration. Any joint economic activity conducted without
the formation of a separate legal entity is deemed an independent