VAT and excise rates for some goods changed

 

In accordance with the Law of the Republic of Azerbaijan on Amendments to the Tax Code of the Republic of Azerbaijan, signed by the President of the Republic of Azerbaijan and entered into force on 09.03.2021, import of machinery, equipment, and fixtures imported on the basis of a confirmation document of the Ministry of Economy of the Republic of Azerbaijan for the purpose of production and processing of jewelry made of gold and silver, as well as the sale of gold and silver in the form of bars, coins or granules are exempted from VAT for a period of 3 years from January 1, 2021. In addition, according to this Law, imported platinum, gold and jewelry, and other products made of them, processed, sorted, framed and hardened diamonds are exempted from excise duty for a period of 1 to 3 years from January 1, 2021.

In accordance with this Law, starting from 09.03.2021, smoking tobacco excluding tobacco for industrial purposes, "homogenized" or "reconstituted" tobacco, chewing or snuff tobacco, as well as hookah tobacco, tobacco, and tobacco products consumed as a result of heating (steam), are subjected to excise. For smoking tobacco excluding tobacco for industrial purposes, "homogenized" or "reconstituted" tobacco, for chewing or snuff tobacco, as well as for tobacco intended for hookah, an excise tax of 30 manats per kilogram is applied, and for tobacco and tobacco products consumed as a result of heating (steam), an excise tax of 12.9 manats per 1,000 units is applied.

In addition, excise taxes on some goods have been increased. Thus, the excise rate per 1000 units of cigarillos (thin cigars) increased from 31 to 43 manats, the excise rate per 1000 units of cigarettes made from tobacco and their substitutes increased from 31 to 35 manats, and the excise rate per liter of liquid for electronic cigarettes increased from 20 to 100 manats. The amount of excise tax on smoking tobacco excluding tobacco for industrial purposes, "homogenized" or "reconstituted" tobacco, chewing or snuff tobacco, as well as hookah tobacco, tobacco, and tobacco products consumed as a result of heating (steam), is calculated by applying the excise rate to the actual volume (quantity) of goods.