Key amendments on legislation for May

The next list of VAT-exempt products for import and sale was approved by the Cabinet of Ministers.

One of the amendments to the Tax Code, which came into force on January 1, 2022, is the VAT exemption of the import and sale of media products and books (excluding e-books), as well as textbooks, import and sale of paper in the form of rolls or sheets related to the production (publication) of these goods  that should be approved by the Cabinet of Ministers of the Republic of Azerbaijan.

The aforementioned list was approved by the Cabinet of Ministers on May 13, 2022. The list includes newsprint, various types of paper, printed books, newspapers, magazines and other periodicals, geographical and hydrographic maps, and all kinds of similar maps.

Refund of paid VAT for residential and non-residential areas

On 25 May, 2022 the President of Azerbaijan signed the Decree on "Conditions and Rule for refund of value added tax paid for non-cash residential and non-residential areas received by individuals engaged in building construction activities in the territory of the Republic of Azerbaijan by consumers" (hereinafter “Rules”).

The Rules was adopted in order to implement the Law of the Republic of Azerbaijan dated November 29, 2019 "On Amendments to the Tax Code of the Republic of Azerbaijan".

According to the Rules, the VAT is refunded to the buyer's bank account by bank transfer in case of the full value of residential and non-residential areas paid to the seller in a non-cash manner.The refund amount is 30% of the VAT paid, and VAT is refunded through the authorized bank within 30 (thirty) working days from the date of submission of the application  to the portal by the buyer.

However, the Rules states that if the buyer buys one or more residential and (or) non-residential areas from the same building,VAT refund applies to VAT paid in proportion to not more than 500 square meters of residential and not more than 500 square meters of non-residential area.

List of activities requiring a license is expanded

The Parliament of the Republic of Azerbaijan adopted a new Law “On amendments to the Law On Licenses and Permits”. Pursuant to the amendments made to the Law , the following activities are also included in the list of activities that require a license:

1. Audiovisual media activities:

1.1. nationwide terrestrial television broadcaster

1. nationwide terrestrial radio broadcaster

1.3. regional terrestrial television broadcaster

1.4. regional terrestrial radio broadcaster

1.5. satellite broadcaster platform broadcaster

1.6. a satellite broadcaster that does not perform satellite broadcasting

1.7. subscription broadcasting service provider

1.8. simple platform operator

1.9. universal operator platform

1.10. multiplex operator

Accordingly, the Parliament of the Republic of Azerbaijan adopted a new Law “On amendments to the Law on state fee” envisaging the state fees for issuance of licenses for above-mentioned activities. The amount of state fees changes between 500-5000 AZN.