"Fresh" used cars should be cheaper in Azerbaijan Azerbaijan is preparing to introduce a new taxation procedure for the sale of used cars by official agencies. The corresponding norm is anchored in the draft amendments to the tax code of the Republic. According to the bill, it is proposed to introduce a transition period of three years, during which value added tax (VAT) will be calculated only on the trade marking (margin), and not on the entire final cost of the vehicle. The preference mechanism applies to cars no older than five years from the date of manufacture, sold by official dealers and purchased exclusively by bank transfer. It should be noted that one of the main issues that came up in the meetings with representatives of dealer chains was the high VAT tax burden arising from buying and selling transactions of used cars, the production date of which has passed no more than five years ago. Hakin.az Contact us.

"Fresh" used cars should be cheaper in Azerbaijan Azerbaijan is preparing to introduce a new taxation procedure for the sale of used cars by official agencies. The corresponding norm is anchored in the draft amendments to the tax code of the Republic. According to the bill, it is proposed to introduce a transition period of three years, during which value added tax (VAT) will be calculated only on the trade marking (margin), and not on the entire final cost of the vehicle. The preference mechanism applies to cars no older than five years from the date of manufacture, sold by official dealers and purchased exclusively by bank transfer. It should be noted that one of the main issues that came up in the meetings with representatives of dealer chains was the high VAT tax burden arising from buying and selling transactions of used cars, the production date of which has passed no more than five years ago. Hakin.az Contact us.