TODAY.AZ / Business

Taxes Ministry clarifies new changes

26 December 2016 [15:58] - TODAY.AZ

By Nigar Abbasova

Azerbaijan’s Taxes Ministry provided detailed information on the imposition of Value Added Tax (VAT) on participants of online lotteries, competitions, games and similar events carried out on the Internet, as well as on purchasers of online services.

The recently approved changes to the Tax Code of the country, in particular to Articles 168.1.5, 169.1, and 169.3 regulate the imposition of tax on online services.

The tax will be charged in the country of stay of individuals participating in online competitions and purchasing operations. Exceptions are a purchase of airline tickets and reservation of rooms in hotels by means of online services.  

If the user of services is a taxpayer, he/she should calculate the amount, while the sum may be compensated after being paid into the state budget. If the participant is not a VAT-payer, the authorized bank deducts VAT from the paid sum, while money is not compensable.

For instance, if Azerbaijani citizen will make a stake worth the sum, which is equivalent to 100 manats in William Hill bookmaker, the bank will withhold some 15.25 manats, and the sum will be transferred to the state budget.

VAT is deemed to be of the most important sources of income of the state budget. The system of VAT in Azerbaijan is similar to that existing in most European VAT systems with tax being imposed on the supply of most of goods and services and on the import of goods.

 The standard VAT rate in the country stands at 18 percent.

VAT payers are entitled to compensate the amount of VAT paid on purchases (Input VAT) which exceeds the VAT received from their taxable supplies (Output VAT). Registered VAT payers are required to submit VAT returns and to pay VAT dues on a monthly basis by the 20th day of the following month.

URL: http://www.today.az/news/business/157246.html

Print version

Views: 1882

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: