Azerbaijan defines procedure of calculating customs debt on VAT

The Azerbaijani Cabinet of Ministers approved the procedure of calculating the amount of customs debt on value added tax (VAT).

The procedure was approved by the Cabinet of Ministers' decision on May 7, 2012.

As the text of the decision was released on Tuesday on its website, it shows that the calculation of customs debt on VAT with respect to imported goods starts from the day of crossing customs border. With respect to exported goods it is from the date of submission of the declaration of goods while the taken tax rate becomes effective on that day and is used as a basis.

The amount of VAT is calculated using the following formula:

VAT amount =(D + A + R) x V/100, where

D - customs value determined during customs clearance of goods;
A - excise tax;
R - customs duties;
V - effective tax rate.

VAT rate in Azerbaijan is 18 per cent.


/Trend/