VATupdate

VAT Rates in Azerbaijan

Quick overview

Standard Rate Reduced Rate Other Rates
18% None 0%

The local name for VAT in Azerbaijan is Əlavə Dəyər Vergisi (ƏDV). There is only a standard VAT rate in Azerbaijan:

  • Standard VAT rate is 18%

Recent developments

For more information about (recent) rate change developments in Azerbaijan, please click here.

Standard rate: 18%

This rate applies for all transactions that take place in Azerbaijan, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

  • Goods and services intended for the official use of the diplomatic and consular representative offices of international agencies and foreign states accredited in the Republic of Azerbaijan, as well as for the personal use of the diplomatic, administrative and technical personnel of these representative offices (including family members living with them), who are not citizens of the Republic of Azerbaijan
  • Exportation of consulting, legal, accounting, engineering, advertisement and other services
  • Importation of goods, supply of goods, and performance of works and provision of services to recipients under grants, with the proceeds of grants received from abroad
  • International or transit transportation of cargo or passengers; provision of works or services that
    are directly connected with international or transit flights, except for international postal services
  • Examples of exempt supplies of goods and services
    • Provision of financial services
    • Contribution of property to an enterprise’s charter fund (capital) in the form of participation share, except for imported property (if the  contribution of property in the form of a participation share is not directly connected to the acquisition of other property in exchange)
    • Sale or purchase of all types of mass media products and the publishing of mass media products (except for advertising activities)
    • Transportation of passengers by subway
    • Production of textbooks for schools, literature for children and state publications funded by the state budget
    • Provision of paid educational services (except for the provision of services in connection with other activities)
    • If it is stipulated that specific production needs cannot be met by local resources for a specific period, the relevant executive authority shall be entitled to grant a VAT exemption for imported goods and equipment to meet those needs

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on May 6, 2021.

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