Recently, the media reports that value added tax (VAT) of 18% will be levied on taxi services.
According to the Ministry of Taxes, VAT is not levied on the services provided by taxi cars in Azerbaijan and the fare paid by clients does not include the VAT: ‘According to the amendments made in tax legislation on January 1, 2017, the VAT is levied on the fares electronically paid by non-residents who have not registered in the tax authority’.
According to the amendments in the legislation, since January 1, 2017, the VAT has been imposed on services provided by foreign taxi companies (Uber, Taxify) operating in Azerbaijan without state registration.
The VAT is not levied on the fares paid for taxi services rendered by companies which have been registered in accordance with the legislation.
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