Value Added Tax (Əlavə Dəyər Vergisi - ƏDV) in Azerbaijan
VAT in Azerbaijan is governed by Chapter IX of the Tax Code of the Republic of Azerbaijan:
- Standard VAT Rate: Flat 18.0% on domestic taxable supplies of goods and services, imports.
- Mandatory Registration Threshold: Any business whose taxable turnover exceeds 200,000 AZN in any continuous 12-month period must register VAT taxpayer within 10 days.
- Special VAT Deposit Account (ƏDV depozit hesabı): VAT on domestic transactions must be paid through statutory electronic bank VAT sub-accounts to qualify for input VAT offsets.
- Reverse Charge Mechanism (Art. 169): When Azerbaijani companies buy software, cloud hosting, or consulting from non-resident entities, 18% reverse charge VAT must be accrued and remitted.
- Monthly Declaration: VAT returns and payments are due by the 20th of the month following the reporting month.
Statutory Regulatory Framework: Compliant with the Tax Code of the Republic of Azerbaijan, Labor Code of the Republic of Azerbaijan, Law on Social Insurance (SSPF / DSMF), and regulatory decrees issued by the State Tax Service, Tariff (Price) Council, and State Customs Committee.