"RULES FOR THE SALE OF GOODS WITH EXPORT MARKINGS" APPROVED
By the decision of the Cabinet of Ministers of the Republic of Azerbaijan No. 448 dated November 14, 2020, the "Rules for the sale of goods with export markings" (hereinafter referred to as the Rules) were approved. These Rules determine the terms of cooperation and regulate business relations between the manufacturer of products produced in the territory of the Republic of Azerbaijan and intended for export, and professional exporters with experience in the export of non-oil products.
In addition, the Rules contain requirements for manufacturers and exporters, control over persons who are not subject to the sale of goods under export markings and operations, as well as measures to control the process of exporting goods with export markings. Except for the persons and operations specified in Article 4 of the respective Rules, they apply to all producers and exporters producing non-petroleum products in the country.
When the manufacturer provides the exporter with a product intended for export, this product is subject to 0% VAT in accordance with Article 165.1.9 of the Tax Code of the Republic of Azerbaijan. To take advantage of this opportunity, the manufacturer and the person (exporter) exporting goods purchased with export markings must comply with the requirements set out for them in Articles 2 and 3 of the Rules.
This mechanism allows the exporter to save working capital equal to the amount of VAT payable when purchasing exported goods and reduces the administrative burden.
The full text of the Rules can be found at the following link.
Source link: “Decision of the Cabinet of Ministers of the Republic of Azerbaijan on approval of the "Rules for the sale of goods with export markings"