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.

If you have any questions or need any information, please feel free to contact us.

01 JUN, 2022