The tax-free system authorized bank has been declared in Azerbaijan

The commercial bank that will cooperate with state bodies on the application of tax free system has been declared in Azerbaijan. The Ministry of Taxes and Ministry of Finance agreed to appoint Bank Silk Way OJSC an authorized bank.

The tax-free system is expected to be launched first in the Heydar Aliyev International Airport. Bank Silk Way was selected among banks taking into consideration that the Bank has its branch No. 2 and department No. 1 functioning at the airport.

Note that the tax-free system provides for refunding of the portion of the amount (Value added tax - VAT) paid by the foreigners and stateless persons over the age of 14 while shopping in Azerbaijan. The relevant rule was approved by Decree signed by President Ilham Aliyev on 12 July. According to the Decree, an authorized bank had to be identified within 15 days.

The tax free system can be implemented only by those stores that are registered as VAT payers. In addition, these facilities have to be engaged in retail trade, the entity should have a cash machine and POS terminal installed, and should have no tax or other debt obligations to the state budget as defined by the Tax Code.