AZE.US
Azerbaijan is preparing to automate the VAT refund system for retail purchases. Under the new mechanism, shoppers paying with certain bank cards will receive the refund directly to their account without needing to keep receipts.
Azerbaijan plans to introduce an automated system for value-added tax (VAT) refunds on retail purchases, making the process faster and simpler for consumers.
The announcement was made by Orkhan Nazarli, head of the State Tax Service under the Ministry of Economy, during a forum in Baku dedicated to the future of the tax system, new management models, and data-driven decision-making.
The initiative will be implemented through a partnership between the State Tax Service, Kapital Bank, and Paşa Bank.
Under the new system, citizens who pay for purchases using bank cards issued by these banks will automatically receive the VAT refund directly to their card account once the payment is processed.
Currently, customers must keep their receipts and register purchases through a dedicated application in order to receive part of the VAT back. With the new mechanism, the refund process will become largely automated, reducing the need to wait for receipts or manually submit purchase information.
Officials say the move is expected to simplify the process for consumers while improving transparency in the tax system.
Economist Khalid Karimli noted that expanding the VAT refund system could also encourage greater use of cashless payments and contribute to the formalization of retail transactions in the economy.