16:51 - 5.03.2026

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March 5, Fineko/abc.az. Currently, the threshold for VAT registration for tax purposes in Azerbaijan is comparatively high in respect to neighboring countries.

ABC.AZ reports that Gulnar Aghazade, the head of the Tax Policy Department of the State Tax Service (under the Ministry of Economy), stated this at a forum in Baku.

She added that this indicator allows asserting that favorable business environment has been formed in Azerbaijan today:

"However, today there is misconception about raising the VAT registration threshold from 200,000 manats up to 400,000 manats. In fact, non-cash earnings through POS-terminals in the amount of 50% are taken into account for VAT registration purposes. That is, currently, only 50% of the turnover generated through POS-terminals accounted for spheres of retail trade and provision of services to the public. This suggests that it is not the VAT registration threshold as a whole that has been increased, but the VAT registration threshold for non-cash income. In other words, in areas serving the population, if payments are carried out completely cashless, this threshold has been raised to 400,000 manats. The main reason for this change is to stimulate non-cash payments, reduce shadow turnover and strengthen the transparency of the economy."