According to Article 165.1.9 of the Tax Code of the Republic of Azerbaijan, VAT is levied at the rate of zero (0) for the sale of goods with an export note.
According to the rules, the person carrying out the sale with the export note (manufacturer) and the person carrying out the export of the goods received with the export note (exporter) must meet the requirements established by the Rules. Thus, the Rules apply only to producers producing non-oil products in the territory of the Republic of Azerbaijan and / or exporters who have carried out import-export operations for at least 1 (one) year.
With the exception of manufacturers or exporters who meet these requirements, other producers or exporters are not covered by the Rules when they are included in the list of persons and transactions not related to the sale of goods listed in the Rules with an export note. For example, the sale of goods with an export note to contractors and operating companies of production sharing agreements, taxpayers with overdue debts on taxes to the state budget, compulsory state social insurance, unemployment insurance and health insurance, 51 percent or more of shares or stakes does not apply to legal entities directly or indirectly owned by the state, the export of goods produced in free zones, special economic zones and other persons and operations listed in the Rules.
In order to export goods purchased with an export note, the manufacturer shall submit to the exporter the "Invoice for the sale of goods with an export note" in the form given in Annex 1 to the Rules. The exporter submits the "Information form on the export of goods sold under the export record" to the manufacturer and the State Tax Service within 1 (one) working day after the customs clearance of goods.
It should be noted that if the goods purchased under the export mark are not exported within the specified period and time, the sale with the export mark is considered as domestic sale. In this case, in order to ensure the fulfillment of obligations to the budget (taxes payable to the budget and interest accrued for the day of delay), the exporter pays to the producer on his account on a predetermined guarantee (bank guarantee or deposit).
You can get acquainted with the details of the rules through the following link:
