Since May 2020, the country has successfully implemented a mechanism providing for the return of part of the VAT paid for goods purchased in retail facilities and catering establishments, with the project yielding important results in the direction of increasing the transparency of the economy.
Currently, there are 66,339 cash registers (CRs) in use throughout the country. In January-June 2022, the trade turnover registered through the new generation CRs amounted to 10 billion 636 million 507.3 thousand manats, which is 55.2 percent more than in the same period last year.
The State Tax Service under the Ministry of Economy reports that more than 1.8 million users have registered on the www.edvgerial.az portal to receive a refund of part of the VAT paid for purchased goods. Since the implementation of the VAT Refund project, more than 267.2 million manats of VAT were refunded to consumers registered on the portal on 651,001,786 cashier's receipt for 6 months of 2022, and over 95.3 million manats of VAT on 222,747,769 checks alone in January-June of this year.
To refund a certain part of VAT, first of all, the consumer, i.e. the person who purchases or uses the services, must be an individual, while the seller or service provider need to be a VAT payer. At the same time, the goods or services purchased must also be subject to VAT. Another point is related to the use by the seller of new generation cash registers. Partial VAT refund is possible only in facilities with new generation cash registers.
