The draft law “On Amendments to the Tax Code of the Republic of Azerbaijan” was adopted by the Milli Majlis in the third reading. One of the important changes in tax legislation aimed at reducing the tax burden of business and stimulating entrepreneurial activity is the exemption from VAT on the sale of buses manufactured in the country, as well as the import of bus spare parts for production purposes on the basis of a supporting document.
Day.Az reports this with reference to the “Vergilar” newspaper of the State Tax Service under the Ministry of Economy of Azerbaijan.
According to the information, according to the currently valid provisions of the Tax Code, the sale of passenger cars produced in the territory of the Republic of Azerbaijan is exempt from VAT from May 1, 2023 for a period of 10 years.
In order to stimulate investment in the automotive industry, a corresponding exemption applies to the production of buses in the country.
Thus, according to amendments to the legislation, the sale of buses manufactured in the country, as well as the import of spare parts for buses for production purposes by legal entities on the basis of an appropriate supporting document, provides for an exemption from VAT from January 1, 2025 for a period of 8 years.
Providing tax incentives to domestic bus manufacturers is aimed at developing the automotive industry and attracting additional investment into the economy.