As is known, "Terms and Rules for refund of value added tax paid by consumers who are natural persons for residential and non-residential areas purchased non-cash from persons engaged in building construction activities in the territory of the Republic of Azerbaijan” was approved by the decree of the President of the Republic of Azerbaijan dated May 25, 2022. An appropriate portal has been prepared in the Internet Tax Administration regarding the implementation of the decree (https://new.e-taxes.gov.az/eportal/az/login/) and was launched in November 2022. To date, tax authorities have received 6,005 appeals from citizens, over 5 miln. manats have been returned for 2,001 appeals.
A number of issues were also discovered that caused difficulties for the VAT refund during the investigation of the applications. Thus, the transfer of funds failed due to incorrect bank details for 940 requests. Since it takes time to clarify the information and re-apply, such cases lead to the extension of the application processing period. For this reason, before applying it is recommended to clarify information with the banks providing services to citizens, and at the same time, to make payments from the subsection "Payments for the purchase of residential and non-residential areas" of the "Community" payments section of the Government Payment Portal upon making non-cash payments for residential and non-residential areas purchased by consumers who are individuals. Because less time is spent in this way on checking applications and returning funds.
