On 12 October 2026, the State Tax Service under the Ministry of Economy of Azerbaijan announced that value-added tax (VAT) refunds for residential and non-residential property purchases have exceeded 26 million manat. This initiative operates under the “VAT Refund” project, which allows individuals to reclaim VAT paid on construction or purchase of housing and commercial spaces. The program aligns with the Tax Code provisions on VAT deductions for individuals and aims to stimulate the real estate sector while ensuring tax compliance. The refunds are processed electronically through the taxpayer’s personal account on the e-taxes portal, requiring valid e-invoices and contractor registration.
Key Takeaways
- Massive Refund Volume: Over 26 million manat has been returned to citizens, demonstrating significant uptake of the VAT refund mechanism for property transactions.
- Digital-First Processing: Refunds are administered via the electronic tax administration platform, requiring taxpayers to submit applications through the “VAT Refund” e-service with supporting documentation.
- Real Estate Sector Stimulus: The policy directly supports housing affordability and construction industry growth by reducing effective acquisition costs for VAT-registered buyers.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement