Unlocking Your VAT Refund: A Comprehensive Guide by ACON Consulting

Are you aware that you can get back a portion of the Value Added Tax (VAT) when making purchases at retail or catering facilities in Azerbaijan? At ACON Consulting, our team of professional tax lawyers is here to guide you through the seamless process of reclaiming what’s rightfully yours. In this blog, we’ll walk you through the essential steps and crucial details to ensure a smooth VAT refund experience.

Understanding the Mechanism of VAT Refund in Azerbaijan

The mechanism for refunding a specific portion of VAT is well-defined, and our law firm has diligently worked to address both technical and legal aspects. We’re proud to announce that we’ve partnered with Capital Bank, an authorized bank that plays a pivotal role in facilitating the VAT refund process.

Key Points to Consider in VAT Refund

When pursuing a VAT refund, it’s crucial to pay attention to three key points. First, the consumer must be an individual making the purchase or utilizing services. Second, the seller or service provider must be a registered VAT payer. Lastly, the refund is only applicable at facilities equipped with new-generation cash registers.

Step-by-Step Guide for Citizens

To initiate the VAT refund process, citizens need to register on our portal (www.edvgerial.az) by providing their individual identification number (FIN), date of birth, and mobile phone number. Once registered, users gain access to an electronic cabinet and a virtual “money box.”

Whether you pay for goods in cash or non-cash form, our user-friendly portal accommodates both scenarios. Citizens making cash payments receive an online cash register check, while those opting for non-cash payments without integrated POS terminals must obtain an extract from the POS terminal. Our Burbank app users enjoy a hassle-free experience by scanning the QR code at the end of the receipt, initiating an automatic reflection of the VAT refund request in the electronic cabinet.

When Can You Expect Your Refund?

After entering the cash register check details into the portal, the State Tax Service verifies the information within 30 days. Subsequently, 17.5 percent of the VAT on non-cash payments and 5 percent on cash payments are credited to a virtual “wallet” created by Capital Bank. Within this 90-day window, users can utilize the funds for utility, mobile, Internet, TV payments, penalties, insurance, and domestic bank card transfers. Notably, Kapital Bank ensures a commission-free VAT refund process, with exceptions possibly applying for bank card transfers based on the relevant tariff column.

Important Considerations

It’s essential to note that these rules apply to VAT paid for various services, goods from supermarkets and retail outlets, and dining experiences at restaurants and cafes. However, VAT paid on petroleum products at gas stations is non-refundable.

At ACON Consulting, we take pride in being your trusted legal partner, ensuring you navigate the VAT refund process effortlessly. Partner with the best law firm in Azerbaijan for a seamless and rewarding experience in reclaiming your VAT.