Tourists get refund about half a million via Tax Free

By Azernews

By Amina Nazarli

Shopping is a big part of many tourists' visits to Baku and since application of the Tax Free system in Azerbaijan foreign tourists from 59 countries could get refund worth 492.600 manats ($298,817).

The total price of the goods from which VAT was withheld during this period amounted to 4.85 million manats ($2.9 million).

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.

Currently, Tax Free system operates in all international airports of Azerbaijan. As many as 204 various stores are connected to Tax Free system.

 It is expected that in the future, this system will start operating at all check points of the country.

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 ($181), including VAT. The goods should be taken out of Azerbaijan’s territory within 90 days from the date of purchase.

Standard VAT rate in Azerbaijan is 18 percent. Regardless of the transfer method, foreign citizens will be refunded the amount of VAT paid for the purchased goods after withholding 20 percent service fee.

To benefit the tax-free service it is necessary to buy tax-free goods at specific Tax Free shops. Then, passport is to be produced for filling an electronic tax invoice. The signed and stamped tax invoice will include the amount of the paid VAT and its last return date.

When leaving the country, a visitor should present to airport customs his electronic tax invoice together with passport. Finally, the custom’s tax invoice should be presented to an authorized bank. The refund can be made both in cash and non-cash (after 10 days) way.

Tax Free doesn’t apply to excisable goods, food products, medicines and medical equipment, the goods which are of a special value for preservation of cultural heritage and considered as the country’s cultural and historical valuables, products the sale of which is exempt from VAT in the country, the goods the export of which requires a license, the frameless, raw or unsorted precious stones, precious metals in the form of ingots, the goods exported from Azerbaijan without accompaniment, vehicles and spare parts, the goods exported via mail or internet services.

Starting October, website www.taxfree.az  is available in three languages – Azerbaijani, English and Russian. The website can also be reached from the Taxes Ministry’s www.taxes.gov.az and www.e-taxes.gov.az, as well as through official web pages in social networks.