The Tax Code of the Republic of Azerbaijan

Article 158. Cancellation of registration
158.1. If taxpayer, including entities, specified in Articles 218.1.2 and 218.1.3 of this Code, ceases his/its activity charged for VAT (except for cases envisaged in Article 16.3 of this Code), he/it shall be obliged to place an application for the cancellation of registration on VAT. In such case the cancellation of registration for the purposes of VAT shall enter into force from the date when taxpayer’s taxable operations are ceased.
158.2. Taxpayer who/which has registered voluntarily and whose total taxable operation during the preceding 12 months do not exceed the volume equal to 100000 manats may apply for the cancellation of registration at any time within one year after his/its last registration for VAT purposes, with exception of situations stipulated by article 158.1. of this Code. The cancellation of registration for VAT purposes shall enter into force from the date of submission of application to the tax authority on cancellation of registration.
Tax authority shall send to relevant executive authority the information on cancellation of VAT registration within one business day.
158.3. The tax agency shall remove from the registry of VAT payers the name and other details concerning the person whose registration for VAT purposes has been cancelled.
Article 159. Taxable bases
159.1. Provision of goods, works, rendering of services and taxable import are subject to taxation.
159.2. Taxable transactions shall include, along with the furnishing goods, performing work and rendering services that are exempt from tax under this Section`s provisions, any furnishing of goods (including fixed assets), performance of work and rendering of services within the framework of a joint economic activity carried out without the creation of a legal entity, provided that they are conducted in the territory of the Republic of Azerbaijan pursuant to Article 168 and 169 of this Code. Performance of works and provision of services outside the territory of the Republic of Azerbaijan shall not be included in taxable operations in accordance with article 168 of this Code.
159.3. Import of goods shall, with the exception of the import exempted from tax pursuant to this Section, be considered taxable as import. Goods that are temporarily imported by transit or goods that are not considered imported goods pursuant to customs legislation shall not be considered importation goods for VAT purposes.
159.4. Taxpayer’s supply of goods, performance of works and provision of services (including on a non-compensated basis) to its own employees or for non-economic activity, as well as barter operations shall be viewed as a taxable operation.
159.5. If taxpayer makes a purchasing of goods (works, services) by paying the VAT and receives or holds the right to receive a credit, the use, loss, damage, writing-off without full depreciation or theft of goods, with exception of emergency situations of such goods (works, services) for non-commercial activity shall be considered as a taxable operation.
159.6. If taxpayer’s registration is cancelled, the goods that remain in his/its ownership at the time of cancellation shall be considered goods realized at such time and within the limits of a taxable operation.
159.7. Regardless of other provisions of this article, the delivery of goods by the person who made the purchase of goods in the result of VAT taxable operations but does not hold the right for VAT compensation on the basis of article 175 of this Code, shall not be considered as taxable operation. If partial VAT compensation was not provided during purchasing the amount of taxable operation proportional to the uncompensated part.
159.8. VAT operations by persons not registered as VAT payers as well as their operations released from VAT or zero (0) VAT rate, but conducted with application of VAT shall be subject to taxation.
159.9. Minimum turnover taxable for VAT purposes shall be calculated by persons engaged in activities on apartment construction, via application of rates set by the relevant executive authority by territorial zones of cities and districts of the country, to the amount of 225 manats for each square meter of the taxable facility, as per Article 219.3 of this Code.
159.10. In accordance with Articles164.1.11, 164.1.15, 164.1.16 and 164.1.20-164.1.25164.1.20-164.1.25,
164.1.33 and 164.1.35of this Code,introductionof imported goods,exempted from VAT in the territory of the Republic of Azerbaijan is considered as a taxable transaction.