BAKU, Azerbaijan, January 2. The import of equipment and materials under reconstruction projects of large oil refineries in Azerbaijan will be exempt from value-added tax (VAT) until January 1, 2029, Trend reports.
The exemption applies to refineries with an annual crude oil refining capacity of at least 3 million tons and is granted on the basis of a supporting document issued by the body (organization) designated by the relevant executive authority.
This issue has been reflected in the law on amendments to the Tax Code, approved by the President of the Republic of Azerbaijan, Ilham Aliyev.
The VAT exemption period for equipment and materials imported within the framework of the Heydar Aliyev Oil Refinery reconstruction and modernization project has been extended by three years. The extension aims to reduce financial costs and redirect saved funds toward investment, as well as the production of gasoline and diesel fuel that meet Euro-5 standards.
Previously, these VAT benefits were scheduled to apply from January 1, 2021, to January 1, 2026.