Azerbaijan launches new mechanism for refunding part of VAT to consumers
Azerbaijan has launched a new mechanism for refunding a certain part of the value added tax (VAT), Elchin Mammadov, Head of Taxpayer service Department in the Ministry of Taxes said, Trend reports.
“Besides the setting of the mechanism, in accordance with the relevant government agencies, the service identified an authorized bank that will be involved in the process - Kapital Bank. Also, work on the preparation of a special website where consumers can request refunding part of the VAT paid for bought goods, has been completed," said Mammadov.
“According to the rules, when refunding a certain part of VAT, certain factors are taken into account. The consumer must be an individual, and the seller or service party must be VAT payers, using new generation cash registers. The refund of the part of VAT is possible only at facilities, which use the new cash registers,” he noted.
“In order to return part of the VAT, citizens must register on the mentioned website, after which they will be able to use an electronic account,” Mammadov emphasized.
“The consumer can pay for the goods by cash or non-cash. In the first case, the seller must present to the consumer an online check of the cash register. When paying by bank transfer without integration with the POS-terminal cash register, the consumer must also provide an extract from the POS-terminal,” he added.
“Within 90 days from the time of receipt of the check, the 12-digit identifier of the receipt should be entered by the user on the website. The users of the Kapital Bank’s 'BirBank' application can easily return VAT by just scanning through this application the QR code located at the end of the check. The phone number registered in the BirBank app must be the same as registered on the website. In this case, a request for the refund of the VAT will be automatically reflected in the electronic account,” Mammadov said.
“Immediately after this, information about the check is checked for compliance in the database of the State Tax Service. After 30 days from the time of receipt of the check, 15 percent of the amount of VAT on non-cash payments, and 10 percent on cash payments are put in a virtual wallet, which is available in the online user cabinet of the website. That money can be used to pay for utilities, mobile, internet, TV, insurance payments, or be transferred to bank cards," said Mammadov.
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