TODAY.AZ / Business

Azerbaijan eyes to greatly reduce VAT on imports of butter, dairy products

14 November 2017 [13:00] - TODAY.AZ

By  Trend


There is a plan to reduce the value-added tax (VAT) rate from 18 to 10 percent when importing butter and several types of dairy products to Azerbaijan, Mirgasim Vahabov, head of the Main Department for Finance, Tariffs and Currency Control at the State Customs Committee, told ATV channel.

He noted that relevant amendments are planned to be introduced to the tax legislation and they can come to force as early as January 1, 2018.

“Currently, preparatory work is being carried out in this direction,” he added.

At the same time, he reminded, entrepreneurs in Azerbaijan should be socially responsible and they shouldn’t set the maximum possible margin on the goods sold.

“In accordance with the law, entrepreneurs must set a margin of 20-30 percent of the value of the goods they sell,” Vahabov added.

Currently, tax and customs duties on the import of butter in Azerbaijan are 36 percent [15 percent - the customs rate, 18 percent - VAT, 3 percent - transportation costs].

On November 7, the Cabinet of Ministers of Azerbaijan reduced the rate of customs duty on imports of butter and other fats from 15 to 5 percent. The decision will enter into force within 30 days after its publication and will be valid until December 31, 2019.

URL: http://www.today.az/news/business/166769.html

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