VAT Refund

Azerbaijan has introduced Tax Free shopping, a service that allows to ensure full or partial refund of Value-Added Tax (VAT) paid on the purchase of goods by foreign citizens (mainly tourists).

A widely used international practice enjoyed by foreign travelers, the Tax Free system’s introduction is aimed at attracting foreign tourists’ interest in the country, ensuring the sustainability of the development of tourism and strengthening of competitiveness thereof.

The VAT amount paid on the purchase of goods not designed for production or business purposes in shops displaying Tax Free signage is refunded to foreign citizens in the airport while departing from Azerbaijan.

• The standard VAT rate in Azerbaijan is 18%.
• The functions of Operator of Tax Free system are performed by the Ministry of Taxes of the Republic of Azerbaijan.
• The Correspondent Bank for the Tax Free system is Premium Bank OJSC.
• To benefit from the opportunities of Tax Free shopping, one needs to shop at stores displaying Tax Free signage.
• To be eligible to use this opportunity, the cost (including VAT) of purchased goods per one e-tax invoice must not be less than 300 AZN and must be taken out of the territory of the country by air within 90 days from the purchase date.
• The buyer may receive the VAT in cash or on their bank card through transfer.
• The VAT amount minus 20% handling fee for the services provided by the Operator and service charges for banking transactions will be paid to the buyer by the correspondent Bank.

More VAT Refund information at www.taxfree.az