Azerbaijan’s draft tax package for 2027 would introduce excise duties on chips and sweet drinks, establish a fixed monthly tax for independent couriers and change value-added tax rules for some vehicle and property resales.
The measures are part of a budget-related bill and have not yet taken effect.
New Excise Duties and Courier Tax
The proposal would impose an excise duty of 1 manat, or about 59 cents, per kilogram of chips. Sweet mineral and carbonated drinks would face a duty of 10 gapiks, or about 6 cents, per liter.
Self-employed couriers who do not hire workers could pay a fixed simplified tax of 15 manats, or about $8.82, per month. Supporters say the arrangement could bring more delivery work into the formal economy.
Beauty salons would receive a five-year simplified-tax regime: 8% on cash payments and 6% on cashless transactions. For businesses registered for VAT, half of turnover processed through point-of-sale terminals would be excluded from the VAT base.
Used Cars and Apartments
Official dealers selling used vehicles no more than five years old would, for three years, calculate VAT only on their profit margin if they bought the vehicle through a cashless payment. Current rules calculate VAT on the full sales price.
A similar three-year regime is proposed for companies that buy apartments from individuals through cashless transactions and resell them. VAT would apply to the margin rather than the full property price.
Residential and nonresidential premises received by owners in exchange for units in demolished buildings would not be treated as taxable income.
Tractors, Formula Racing and Fuel Tracking
Locally assembled agricultural tractors and imported components used to produce them would receive a six-year exemption from VAT and customs duties beginning Jan. 1, 2027.
Tax benefits connected with Formula 1 and Formula 2 races and VAT exemptions for Level 2 and Level 3 electric-vehicle chargers would be extended for three years. A road-tax benefit for foreign trucks using combined rail-and-road transit would be extended for two years.
The package also proposes chemical marking of AI-92 gasoline and diesel fuel to track them from production or import through retail sale.
Details of the draft package were reported by Vesti Baku.