Refund of value added tax paid for residential and non-residential areas
Terms and procedure for the refund of value-added tax paid for residential and non-residential areas purchased in a cashless manner were approved (Decree of the President of the Republic of Azerbaijan dated May 25, 2022).
Briefly, this Decree stipulates the followings:
- VAT is refunded to the purchaser by transfer to the purchaser's bank account. The refund amount is 30% of the VAT paid.
- VAT is refunded only if the value of residential and non-residential areas paid to the seller in full amount and in a cashless manner.
- If partial payment were made for the provision of residential and non-residential areas, VAT (i.e. 30% of the total VAT amount) is refunded to the purchaser after full and cashless payment of the purchased area.
- If the purchaser purchases one or more residential and (or) non-residential areas from the same building, the VAT refund is applied to the VAT paid in proportion to the part of the purchased residential and non-residential area not exceeding 500 sq.m. When the purchaser purchases several residential or non-residential areas with an area of more than 500 sq.m from the same building, if the selling price of a sq.m of residential or non-residential areas is different, while determining the VAT amount for 500 sq.m, the sale price of each sq.m is based on the higher price of the area.
- Cashless VAT paid is refunded within 30 working days from the date of receipt of the application.
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