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Indirect tax (VAT)

VAT alone, if not duly accounted for in a company's tax strategy, may increase the cost of operations in Azerbaijan by 18%. In addition, VAT can be a significant cash flow cost for businesses due to delays with VAT refunds or the necessity to pay output VAT in the absence of cash received from customers. Frequent changes in legislation and a lack of unified interpretation of this legislation by the tax authorities make indirect taxes a complex field of legislation. 

We specialize in helping companies comply with the complex and rapidly changing requirements for VAT and excise tax in Azerbaijan. Our services include:

  • A review of the company’s business model from the point of view of indirect taxes with the identification of areas of risk and the possible optimization of indirect tax payments.
  • Detailing strategies on how to claim VAT refunds and support with implementing this strategy.
  • Analysis of contractual arrangements in view of the potential negative implications related to VAT and excise issues.
  • On-going consultation on the application of indirect taxes to particular transactions and activities; such as capital construction, business reorganization and trade incentives.