Almost 3 years have passed since the launch of the “VAT Back” project. As an innovative project, receiving special public support, “Reclaim VAT” is an initiative that promotes transparency in the economy, expansion of cashless payments and incentive mechanisms.
When starting this project, the State Tax Service aimed to achieve effective results in reducing the scale of the “shadow economy” by involving public participation. Since May 2020, the mechanism providing for the refund of a part of the VAT has been successfully applied, the project has produced important results in the direction of making the economy more transparent.
Thus, as a result of the implementation of the project, the real turnover of taxpayers was revealed. The project “Recover VAT” is implemented in parallel with the introduction of new generation NKAs. In 2022, the turnover recorded through the new generation NKAs was close to 19.5 billion manats, which is 27% more than the same period of the previous year. If we look at January-February 2023, the turnover is close to 3.1 billion manats, which is 19.7% more than the same period last year.
To date, more than 2.4 million users have registered on the www.edvgerial.az portal for the return of a part of the VAT paid for the purchased goods. A total of 400.7 mln. will be paid to consumers registered on the portal from the time the “VAT refund” project was implemented until March 1, 2023. manat, and during the months of January-February of this year, more than 24.7 million manats of VAT were returned.
On the other hand, the volume of non-cash payments has increased significantly. In order to stimulate non-cash payments, the interest rate of VAT refund on non-cash payments has been increased from 15 percent to 17.5 percent. which creates a significant interest in consumers to make cashless payments. In 2022 alone, more than 68.4 million manats of VAT were returned to consumers for goods or services purchased without cash within the framework of the project.
Source: gov.az
