TODAY.AZ / Business

Clients of non-resident taxi services in Azerbaijan not subjected to VAT

04 December 2017 [12:34] - TODAY.AZ

By  Trend

Clients of local taxi services as well as representative offices of foreign companies registered in Azerbaijan are paying the value added tax (VAT), the Ministry of Taxes of Azerbaijan said in a statement.

According to the statement, the services of passenger transportation provided by taxi services registered in Azerbaijan are not included in the number of services subject to VAT, and when paying for these services, VAT is not included in the final cost.

In Azerbaijan, at the beginning of this year, amendments to the tax legislation came into force, which provide for the taxation of electronic commerce.

The collection of VAT from UBER and other non-residents was also provided for in these amendments. However, due to technical problems, the amendments were implemented only partially for purchase of online services from foreign sites, participation in contests and lotteries online.

Meanwhile, UBER and other non-residents operating in Azerbaijan were involved in paying VAT, when paying for their services in non-cash form from December 1.


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