The sale of buses manufactured in Azerbaijan, as well as the import of spare parts for buses for production purposes based on a supporting document, will be exempt from VAT, this is reflected in the proposed amendments to the Tax Code, which were discussed at today's session of the Milli Majlis (Azerbaijani Parliament), APA reports.
According to the draft law, the sale of buses manufactured in the territory of the Republic of Azerbaijan, as well as the import of spare parts for buses for production by legal entities based on a confirmation document from the body (organization) determined by the relevant executive authority, will be exempt from VAT for a period of 8 years from January 1, 2025.
According to the current version of Article 164.1.41-3 of the Tax Code, the sale of passenger cars manufactured in the territory of the Republic of Azerbaijan is exempt from VAT for a period of 10 years from May 1, 2023.
In order to stimulate investment in the car industry, it is proposed that the relevant exemption be extended to bus production in the country.
According to the "List of Raw Materials and Materials Exempted from Import Value Added Tax" approved by Decree No. 1732 of the President of the Republic of Azerbaijan dated July 1, 2022, taking into account that the import of spare parts for passenger cars is exempt from VAT, the same approach is intended to be applied to the import of spare parts for buses for production purposes.
According to the proposed amendment to the Law "On Customs Tariff", the import of spare parts for buses for production purposes by legal entities based on a confirmation document from the body (organization) determined by the relevant executive authority will be exempt from customs duties for a period of 8 years from January 1, 2025.
If both laws are adopted, they will come into force on January 1, 2025.
The draft law was put to a vote and approved in the first reading.
