As of 8 September 2026, the State Tax Service announced that over 23 million manats in Value Added Tax (VAT) paid by individuals on residential and non-residential property purchases have been refunded under the “VAT Refund” (ƏDV geri al) project. This initiative, launched in accordance with amendments to the Tax Code effective from 1 January 2024, allows citizens who bought newly constructed apartments or commercial premises from developers to reclaim the 18% VAT embedded in the purchase price. The refund mechanism operates through the electronic “VAT Refund” portal, where applicants submit digital copies of purchase contracts, payment receipts, and identity documents. The STS emphasized that the process is fully automated, with refunds typically credited to applicants’ bank accounts within 30 business days after verification.
Key Takeaways
- Eligibility Expansion: The program now covers both residential and non-residential properties acquired after 1 January 2024, provided the developer is a registered VAT payer and the transaction is documented via e-invoice.
- Digital-First Administration: All applications are processed through the STS’s integrated e-services platform, eliminating paper submissions and enabling real-time status tracking via the taxpayer’s personal cabinet.
- Fiscal Impact and Social Equity: The refunds stimulate the construction sector by reducing effective purchase costs for end-users, while ensuring that VAT burden falls on final consumption rather than intermediate investment in housing.
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