Azerbaijan exempts presentation of products of media entities from VAT

Azerbaijan exempts presentation of products of media entities from VAT

BAKU, Azerbaijan, April 1. Presentation of products of media entities (excluding audiovisual media entities), as well as performance of work and services directly related to media activities to media entities (excluding audiovisual media entities) by non-residents which don’t have a permanent representative office in Azerbaijan, has been exempted from VAT, TurkicWorld reports.

This issue was reflected in the amendments to the Tax Code, on the application of which President of Azerbaijan Ilham Aliyev signed the relevant decree.

According to the document, the following amendments have been made to the code:

- Article 102.1.39 is added at the end of Article 102.1.38 with the following content:

"102.1.39. income received by media entities (with the exception of audiovisual media entities) from their own activities (including advertising revenue), as well as material assistance, provided by the body (institution) determined by the relevant executive authority - for a period of three years from January 1, 2023.";

- at the end of Article 106.1.31, the point sign is replaced by a semicolon and Article 106.1.32 is added with the following content:

"106.1.32. income received by media entities (with the exception of audiovisual media entities) from their own activities (including advertising incomes), as well as material assistance provided by a body (institution) determined by the relevant executive authority - for a period of 3 year from January 1, 2023.";

- article 164.1.8-1 is added with the following content:

"164.1.8-1. Presentation of products made by media entities (with the exception of audiovisual media entities), as well as the performance of works and provision of services directly related to media activities, to media entities (except audiovisual media entities) by non-residents who do not have a permanent representative offices in Azerbaijan - for a period of three years from January 1, 2023 ";

- At the end of Article 218-1.1.6 the dot sign is replaced by the semicolon sign and Article 218-1.1.7 is added as follows:

"218-1.1.7. incomes received by media entities (except audiovisual media entities) from their own activities (including advertising revenue), as well as material assistance provided by a body (institution) determined by the relevant executive authority, - for a period for three years from January 1, 2023".

This law has been effective from January 1, 2023.