TODAY.AZ / Business

Several banks to provide VAT refund during Baku Shopping Festival

06 April 2017 [12:15] - TODAY.AZ

By Azernews


By Amina Nazarli

The first-ever Baku Shopping Festival promises to be a grand event for all those, who are fond of fashion and willing to have an interesting and fun-packed day.

During the Festival, which will include shopping, entertainment, fashion and culture, many city malls will offer special discounts, and temporary pop-up shops will present a broad range of Azerbaijani and foreign brands.

Alongside foreigners, Azerbaijani citizens will also have a chance to benefit Tax-free system during the Festival scheduled for April 10-May 10.

The Festival organizers told Trend that the VAT refunds can be received in the branches of five banks, including Kapital Bank, PASHA Bank, Yapi Kredi Bank Azerbaijan, Bank Silk Way and Azerbaijan Industrial Bank.

“The VAT rate on all goods in Azerbaijan is 18 percent. Some 20 percent will be deducted from the refunded amount for the organization service of the Festival. In addition, the authorized bank will charge a fee for the provision of VAT refund services, and the rest sum will be refunded,” the source said.

Buyers can obtain a refund of the VAT paid on the goods purchased during the day, when the purchase was made. VAT refund can be obtained either in cash or in non-cash by transfer to a card or bank account.

During the festival, a buyer [Azerbaijani citizens or foreigners] can have the VAT refunded at the banks in case the amount of the purchased goods exceeds 100 manats ($58) [including VAT].

The Shopping Festival will not cover excise goods, gold, food and cars, but only production of light industry.

Tax-free shopping became available in the country from July 2016 after the adoption of the relevant law in the Parliament. And now while coming to Azerbaijan on a tourist visa, tourists can take advantage of Azerbaijan's tax- free system.

Foreign citizens can benefit from Tax Free system, if the cost of purchased goods per one e-tax invoice is not less than 300 manats, including VAT. The goods should be taken out of Azerbaijan’s territory within 90 days from the date of purchase.

Currently, the Tax Free system does not apply to excisable goods and foodstuffs; medications and medical equipment; products, exempt from VAT in the country; goods which may require an export license; raw or ungraded precious gemstones; precious metal ingots; goods exported from the territory of Azerbaijan in an unaccompanied baggage; vehicles and spare parts; goods exported by mail or through the Internet.

URL: http://www.today.az/news/business/160009.html

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