– A portion of the VAT paid for residential and non-residential areas will be transferred to the virtual “VAT Refund” account.
– The implementation of the Presidential Decree of the Republic of Azerbaijan dated May 25, 2022, on the “Conditions and Procedure for the Refund of Additional Value Added Tax Paid for Residential and Non-Residential Areas Engaged in Building Construction Activities within the Territory of the Republic of Azerbaijan by Physical Persons as Consumers” has led to the preparation of e-applications by the State Tax Service and the submission of applications by buyers through the Internet Tax Administration since November 21, 2022. So far, approximately AZN 17.2 million has been refunded to citizens based on 4,761 applications.
– The State Tax Service, under the Ministry of Economy, continues its work in the direction of increasing citizen satisfaction in the mentioned field. However, there have been cases where incorrect bank details or accounts belonging to other individuals were provided in applications for the refund of VAT paid for real estate, which creates difficulties when transferring a portion of the VAT amount to the specified accounts. As a result, these difficulties lead to additional administrative burden and decrease in citizen satisfaction.
– Therefore, relevant changes have been made in the administration of VAT refund. When a query is received from the client bank regarding the transfer of funds, the funds will be transferred to the client’s virtual “VAT Refund” account, eliminating the need for entering bank information. Citizens who do not have a virtual “VAT Refund” account in their client bank can create the account through the respective link when applying with their application.
Source: taxes.gov.az
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
