BAKU, Azerbaijan, December 2. The Board of the Ministry of Economy has made amendments to some legal acts regarding the adoption of the law of Azerbaijan No. 98-VIIGD "On amendments to the Tax Code of Azerbaijan" dated December 16, 2024, Trend reports.
The relevant new decision was signed by the Minister of Economy Mikayil Jabbarov.
According to the decision, the existing rules on tax administration are being updated and improved. The changes apply to the procedures for tax registration and re-registration of individuals and the mechanisms for conducting on-site and mobile tax audits, as well as the system for refunding value-added tax (VAT).
One of the most important innovations is the expansion of the VAT refund mechanism. Thus, from now on, it will be possible to refund VAT paid not only for goods purchased for non-commercial purposes, but also for medical services provided to foreigners and stateless persons by medical institutions and private medical practitioners.
According to the regulation, VAT paid on medical services provided to foreigners and stateless persons is expected to be refunded only if these persons leave the country within 90 days from the date of provision of medical services and only for non-cash payments.
The decision also expanded the scope of on-site and mobile tax audits. The rules for conducting tax audits based on requests received from competent authorities of foreign states or information on income obtained abroad have been clarified, and in some cases, the audit period has been extended to five years. Control over the correct distribution of income and expenses over the years under long-term contracts has been strengthened.
Furthermore, the regulations governing tax incentives associated with life savings insurance have been elucidated. The decision explicitly articulated that the prevailing advantages delineated in agreements executed prior to January 1, 2025, shall be preserved for all entities engaged in the contractual framework.
The ministry's legal department has been instructed to ensure that necessary measures are taken to send this decision to the Ministry of Justice of Azerbaijan within three days for inclusion in the State Register of Legal Acts.
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