The Tax Code of the Republic of Azerbaijan

Article 179. Relations with the budget when the amount of creditable tax exceeds the amount of calculated tax
179.1. With respect to taxpayer whose taxable turnover taxed at a zero rate is at least 50% - the credited tax amount which exceeds the calculated tax amount in the accounting period shall be returned by the State tax agency within 45 days after the receipt of taxpayer’s application.
179.2. With respect to other taxpayers В?” the credited tax amount that exceeds the calculated tax amount in the accounting period shall be carried forward to the following 3 months and credited against the payments of that period. Any balance of the excess payment shall be refunded from the treasury within 45 days after filing a tax return for that period.
179.3. In any case when certain amounts are refunded to taxpayer erroneously, the tax agency may demand the return of such amounts according to the procedure established for the collection of tax.
Article 180. Liability of Taxpayers and Supervision by Tax Authorities
180.1. Taxpayers and their officials shall be liable for calculating the VAT correctly and paying it to the Treasury in a timely manner. They shall also be liable for filing tax returns with tax authorities within the established term, pursuant to the tax legislation of the Republic of Azerbaijan or, in the event VAT collection is vested in customs authorities, pursuant to customs legislation of the Republic of Azerbaijan.
180.2. Administration and supervision with respect to tax collection shall be carried out by State taxation and customs authorities, within the power vested in them, in accordance with this Code and customs legislation of the Republic of Azerbaijan.
Article 181. Refund of VAT in the case of a free grant
181.1. A person who receives goods or benefits from work or services provided free of charge by an international organization, foreign legal entity or physical person pursuant to international or intergovernmental agreements to which the Republic of Azerbaijan is a party, shall be entitled to a refund of the VAT paid on said goods, work or services, within 45 days upon submitting electronic tax invoices to tax authorities.
181.2. The refund shall be made only if the request for the refund is filed before the end of the month following the month in which the taxable operation or the taxable import takes place.
Note: If as of 1 January 2003, the total amount of taxable operations of the taxpayer does not exceed 5000-fold size of non-taxable amount of monthly income for the previous 12 full calendar months, the taxpayer within 45 days can apply for revocation of registration for VAT, except for cases stipulated by the Article 158.1 of the Tax Code of the Republic of Azerbaijan. Cancellation of registration for VAT purposes shall be carrying out in accordance with the second sentence of Article 158.2 and 158.3 of the Tax Code.

If the tax declarations submitted after the date of entry into force of the law „– 383 (1 January 2003) cover the activity relating to the period prior to January 1, 2003, then tax rates in effect during this period shall be applied.

If electronic electronic tax invoices for transactions undertaken by the taxpayer in cash before January 1, 2003 and subject to VAT are reflected in the declarations submitted to the tax authorities within the set deadline for the period in which these operations were carried out, they give rise to a tax reimbursement.