Taxes Ministry clarifies situation with taxi service and VAT

11:45 - 4.12.2017


December 4, Fineko/abc.az. The Ministry of Taxes has issued a statement in connection with recent information in the media on taxi services subject to VAT.

In the statement the Ministry says that the taxi service rendered by Azerbaijan’s resident taxpayers is a service without VAT - the price of such service does not include VAT.

"In accordance with the amendment to tax legislation from 1 January 2017, the non-resident taxi driver is paid VAT through the VAT-including taxi bill by the taxi passenger during non-resident’s payments at a tax organ for work and services provided in e-commerce regime by the non-resident which has not permanent representation in Azerbaijan," the statement says.

E-commerce services provided by foreign companies (UBER, Taxify, etc.) rendering passenger rail services via various electronic information systems, including mobile applications, without registration in Azerbaijan from 1 January 2017 are subject to VAT.

And the cost of services, provided by those foreign companies in connection with organisation of tax services in the country, includes the value added tax, which includes VAT on these amounts when transferring finances to foreign companies.

Only taxpayers, engaged in taxi passenger service on a legal basis in the country’s territory and registered at state tax authorities, and local taxpayers which are legal entities and individuals, and their representative offices in Azerbaijan do not charge VAT for their taxi services (neither in cash nor through credit cards).

 

Вся лента