Finance

Finance

VAT rate differentiation proposed in Azerbaijan

13 April 2016 13:55 (UTC +04:00)

One of the main objectives of the stimulus measures is to differentiate the VAT rate included in consumer prices, the Chamber of Accounts said in a statement on April 13.

It should be noted that the experience of the differentiation of the standard VAT rate on groups of goods (work, services) is used in many countries – Austria, Germany, Belgium, the United Kingdom, Sweden and others, with non-primary (diversified) economic model, the statement said. “For example, along with the standard VAT rate, reduced rates for essential commodities are widely used in the member countries of the Organization for Economic Co-operation and Development (OECD).”

Considering the above, as additional support for the measures taken towards the further diversification of non-oil sector, minimization of dependence on imports and strengthening of the social protection of law income families, it is appropriate to differentiate the 18% VAT rate envisaged in Article 173.1 of the TAX Code, the statement said.