How much VAT will be refunded to those who buy houses from buildings?

By consumers who are individuals Azerbaijan Conditions for refund of value-added tax paid for residential and non-residential areas received in cash from persons engaged in building construction activities in the territory of the Republic of Azerbaijan have been announced.

This, President Approved by the decree signed by Ilham Aliyev today, “By consumers who are individuals Azerbaijan Conditions and Rules for refund of value-added tax paid for residential and non-residential areas received in cash from persons engaged in building construction activities in the territory of the Republic of Azerbaijan.

The requirements of this Regulation shall apply regardless of the price of residential and non-residential premises (including VAT) on the electronic invoice for residential and non-residential premises received in cash from persons engaged in building construction activities. Return of VAT to the buyer by the buyer bank account transfer way will be carried out with. The refund amount is 30% of the VAT paid.

Subject to the requirements of this Regulation, the value of residential and non-residential areas subject to VAT will be refunded to the seller in full in cash. In case of partial payment for the provision of residential and non-residential premises, the Commissioner shall pay VAT after the full cost of residential and non-residential premises has been paid in cash. bank by the buyer bank will be transferred to the account.

As a rule, if the buyer receives one or more residential and (or) non-residential areas from the same building, the VAT refund will be applied to the VAT paid in proportion to the part of the purchased residential area not exceeding 500 square meters and non-residential area not exceeding 500 square meters. When the buyer buys several residential or non-residential areas with an area of ​​more than 500 square meters from the same building, the selling price of one square meter of residential or non-residential areas is different, while the selling price of one square meter is higher when determining the 500 square meter part for VAT refund. residential or non-residential area will be taken as a basis.

VAT paid non-cash for residential and non-residential areas shall be refunded by the buyer through the authorized bank within 30 (thirty) working days from the date of submission of the application to the portal.

The portal where the buyer’s application for refund of non-cash VAT paid for residential and non-residential areas purchased in the cases provided for in this Regulation is registered. information will be the system.

The procedure for registration of residential and non-residential areas has also been determined. When submitting residential and non-residential premises to the seller, the State shall issue an electronic invoice for the full value of those residential and non-residential premises (including VAT). Tax Internet service Tax By compiling the management portal in real time through the electronic invoice system unit will transfer to an electronic database and print and present to the recipient.

The buyer must register on the portal for VAT refund, create an e-cabinet no later than 90 days after paying the full cost of residential and non-residential premises to the seller in cash, scan the application through the e-cabinet and send the following documents to the portal:

– a copy of the document on the provision of residential and non-residential areas;

– Bank payment document confirming that the full value of the purchased residential and non-residential areas (excluding VAT) was paid in cash to the seller’s bank account, and the amount of VAT to the seller’s VAT deposit account and clearly indicates the following information:

– surname, name and patronymic of the payee making the payment;

– name of the seller accepting the payment, TIN and bank account number;

– the purpose of the payment.

VAT refund will not be allowed if the seller is applied for after 90 days for fully paid residential and non-residential areas.

The rule also defines the transition provision. Tax Entry into force of Article 165.6 of the Code 2020in January30 percent of VAT paid to buyers who have acquired and paid for residential and non-residential areas from persons engaged in building construction activities from the date of entry into force of this Regulation, as well as those who continue to pay for residential and non-residential areas; (regardless of whether the VAT amount is paid to the seller’s bank account or VAT deposit account before the effective date of this Regulation) will be refunded subject to the following requirements:

– buyers who have paid in full apply to the tax authority where the seller is registered within 90 days from the date of entry into force of this Regulation, and buyers who continue to pay within 90 days after full payment;

– In addition to the document provided for in the rules, when the buyer submits to the tax authority where the seller is registered documents confirming that the value of residential and non-residential areas was paid in cash to the seller’s bank account.

Buyers’ appeals in these cases are investigated by the tax authority in accordance with the requirements of this Regulation, and if the risks are not identified, the information on the transfer of VAT to the buyer’s bank account is sent to the authorized bank individually, not through the portal. The buyer is informed about this.