33.5 Million Manat VAT Refunds Issued for Cashless Real Estate Purchases in Azerbaijan

• The project for refunding a portion of VAT paid on non-cash purchases of residential and non-residential properties is successfully ongoing, managed by the State Tax Service under the Ministry of Economy.
• From November 2022 to June 1, 2024, a total of 15,897 applications were received through the relevant portal, with 8,363 applications resulting in the payment of 33.5 million manats.
• In the first five months of this year alone, 2,522 applications were submitted, with 1,532 resulting in the payment of 7.6 million manats, while 898 applications were rejected based on regulatory requirements.
• Since the portal’s launch, 1,365 “Information Forms on the Presentation of Residential and Non-Residential Areas” have been submitted by individuals engaged in building construction, with 891 being approved.
• The VAT refund also applies to properties purchased non-cash from individuals engaged in building construction through state mortgage loans. Starting from September 2023, the funds are transferred to the individual’s virtual “Ədvgerial” account in the authorized bank.
• Common reasons for application rejections include not applying within 90 days of the last payment date, payment details not reflecting e-invoice information, payments made by other individuals, and separate payments for VAT and principal amounts.
• Individuals engaged in building construction are advised to submit information forms related to building construction as per legislative requirements. Tax authorities conduct relevant monitoring and analysis in this regard.

Source: taxes.gov.az

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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