BAKU, Azerbaijan, July 7. A total of 2,665 applications were submitted regarding the refund of a portion of the VAT paid by individuals for residential and non-residential areas purchased cashless from persons engaged in building construction activities in Azerbaijan in the first six months of this year.
The data obtained by Trend from the State Tax Service shows that out of these, 1,768 applications were paid a total of 14.8 million manat ($8.7 million) to the citizens, while 868 applications were rejected based on the requirements of the relevant regulations.
During the review of the applications, a number of reasons leading to rejection were observed.
The State Tax Service under the Ministry of Economy once again draws citizens’ attention to these cases.
Thus, the main reasons for rejection are as follows:
Failure to apply within 90 days from the last payment date.
Lack of e-invoice information in the payment description.
Absence of a notarized power of attorney confirming the representative’s authority in cases where full or partial payment was made by another person.
Failure to pay VAT and principal amounts separately during the payment.
Citizens should note that the full value (excluding VAT) of purchased residential and non-residential areas must be paid cashless to the seller’s bank account, and the VAT amount must be paid to the seller’s VAT deposit account.
The STS recommends that persons engaged in building construction submit the relevant information forms in accordance with the legislative requirements.
The partial VAT refund also applies to apartments purchased cashless from persons engaged in building construction activities through state mortgage loans for residential and non-residential areas.
