Baku: A new condition is being established regarding the exemption of passenger cars manufactured in the territory of the Republic of Azerbaijan from value-added tax (VAT), APA reports. This development is part of a proposed amendment to the Tax Code, which was discussed during a session of the Milli Majlis.
According to Azeri-Press news agency, the current Tax Code stipulates that the sale of passenger cars manufactured in Azerbaijan is exempt from VAT for 10 years starting from May 1, 2023. However, the proposed amendment seeks to alter this exemption period to 7 years, effective from January 1, 2027. This exemption applies only if industrial assembly is conducted in full production form and specific technological operations, such as painting and welding, are performed.
Furthermore, the draft law includes provisions for trucks. The sale of trucks manufactured in Azerbaijan, as well as the import of truck spare parts by legal entities for production needs, will be exempt from VAT for 7 years starting January 1, 2026. This exemption is contingent upon obtaining a certification document from the relevant executive authority.
Following discussions, the draft law was put to a vote and successfully passed its third reading, marking a significant step in the legislative process.