Several VAT exemptions have been introduced in Azerbaijan

After recent changes, several VAT exemptions have been introduced in Azerbaijan:

1. Interest paid on financial leasing transactions.
2. Alienation within financial leasing agreements of assets obtained within exempt or non-VAT operations.
3. Advisory services related to the Central Bank’s functions and objectives.
4. Medical services funded by compulsory medical insurance or public and social purpose funds.

Additionally, VAT exemptions are applied from January 1, 2024, for three years for:

1. Agricultural product sales by manufacturers.
2. Turnovers involving wheat, wheat flour, bread, meat, bran, feed, and feed additives.
3. Performances under contracts with state entities funded from the state budget.
4. Services related to F1 and F2 races until 2027.
5. Medical services provided by educational medical institutions.
6. Medical services to designated public and social purpose funds.
7. Import of machinery for jewelry production based on institutional approval.
8. Import of raw oil and natural gas within swap operations with institutional approval.

Source PwC