Azerbaijan VAT

Section 1 — Quick reference

Quick reference fields

Field	Value
Country	Azerbaijan (Republic of Azerbaijan)
Tax name	EDV (Elave Deger Vergisi / Value Added Tax)
Standard rate	18%
Reduced rates	None (single standard rate)
Zero rate	0% (exports, international transport, diplomatic supplies, certain agricultural produce)
Return form	Monthly EDV declaration
Filing portal	https://www.taxes.gov.az
Authority	State Tax Service under the Ministry of Economy
Currency	AZN (Azerbaijani Manat) only
Filing frequency	Monthly
Deadline	20th of the month following the reporting month
Companion skill	vat-workflow-base v0.1 or later — MUST be loaded
Contributor	Open Accounting Skills Registry
Validated by	Pending local practitioner validation
Validation date	April 2026

Key EDV return boxes

Box	Meaning
1	Taxable supplies at 18% — base
2	Output EDV at 18%
3	Zero-rated supplies (exports)
4	Exempt supplies
5	Reverse charge on imported services — base
6	Output EDV on reverse charge
7	Total output EDV
8	Input EDV on domestic purchases
9	Import EDV (paid at customs)
10	Input EDV on reverse charge (creditable)
11	Total input EDV
12	Net EDV payable or credit
13	Credit brought forward
14	Net payable after credit

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	18%
Unknown VAT status of a purchase	Not deductible
Unknown counterparty country	Domestic Azerbaijan
Unknown business-use proportion	0% recovery
Unknown SaaS billing entity	Reverse charge (Box 5/6/10)
Unknown blocked-input status	Blocked

Red flag thresholds

Threshold	Value
HIGH single-transaction size	AZN 10,000
HIGH tax-delta on a single default	AZN 500
MEDIUM counterparty concentration	>40%
MEDIUM conservative-default count	>4
LOW absolute net EDV position	AZN 20,000

Section 2 — Required inputs and refusal catalogue

Required inputs

Minimum viable — bank statement for the month. Acceptable from: Kapital Bank, PASHA Bank, International Bank of Azerbaijan (IBA), AccessBank, Bank Respublika, Xalq Bank, or any other.

Recommended — invoices, e-invoice register from taxes.gov.az, client VOEN (TIN).

Ideal — complete e-invoice register, prior period declaration.

Refusal catalogue

• R-AZ-1 — Simplified tax regime — "Simplified tax payers do not file EDV returns. Out of scope." (Trigger: client on simplified tax (turnover below AZN 200,000).)
• R-AZ-2 — Micro-enterprise — "Micro-enterprises are exempt from EDV. Out of scope." (Trigger: registered micro-enterprise.)
• R-AZ-3 — Partial exemption — "Input EDV apportionment required. Use a qualified practitioner." (Trigger: mixed taxable and exempt supplies.)
• R-AZ-4 — Free economic zone — "FEZ entities have special EDV rules. Out of scope." (Trigger: Alat FEZ or other designated zone.)
• R-AZ-5 — Income tax — "This skill handles EDV returns only." (Trigger: user asks about income tax.)

Section 3 — Supplier pattern library

3.1 Azerbaijani banks (fees exempt — exclude)

Azerbaijani banks patterns

Pattern	Treatment	Notes
KAPITAL BANK, KAPITALBANK	EXCLUDE	Financial service, exempt
PASHA BANK, PASHABANK	EXCLUDE	Same
IBA, BEYNELXALQ BANK	EXCLUDE	Same
ACCESSBANK, BANK RESPUBLIKA, XALQ BANK	EXCLUDE	Same
FAIZ, INTEREST	EXCLUDE	Interest, out of scope
KREDIT, LOAN	EXCLUDE	Loan principal, out of scope

3.2 Government and statutory bodies (exclude)

Government and statutory bodies patterns

Pattern	Treatment	Notes
VERGI XIDMETI, STATE TAX	EXCLUDE	Tax payment
GOMRUK, CUSTOMS	EXCLUDE	Duty (import EDV separate)
DSMF, SOSIAL MUDAFIE	EXCLUDE	Social protection
ASAN XIDMET	EXCLUDE	Government service fee

3.3 Utilities

Utilities patterns

Pattern	Treatment	Box	Notes
AZERIQAZ, AZERENERJI	Domestic 18%	8	Gas/electricity
AZERSU	Domestic 18%	8	Water
AZERCELL, BAKCELL, NAR MOBILE	Domestic 18%	8	Telecoms

3.4 Insurance (exempt — exclude)

Insurance patterns

Pattern	Treatment	Notes
PASHA SIGORTA, AXA MBASK, ATESHGAH	EXCLUDE	Exempt
SIGORTA, INSURANCE	EXCLUDE	Same

3.5 Food and entertainment (blocked)

Food and entertainment patterns

Pattern	Treatment	Notes
BRAVO, BAZARSTORE, ARAZ SUPERMARKET	Default BLOCK	Personal provisioning
RESTAURANT, RESTORAN, KAFE	Default BLOCK	Entertainment blocked

3.6 SaaS — non-resident (reverse charge)

SaaS non-resident patterns

Pattern	Box	Notes
GOOGLE, MICROSOFT, ADOBE, META	5/6/10	Reverse charge at 18%
SLACK, ZOOM, NOTION, AWS, ANTHROPIC, OPENAI	5/6/10	Same

3.7 Professional services

Professional services patterns

Pattern	Treatment	Box	Notes
NOTAR, NOTARY	Domestic 18%	8	If business purpose
AUDITOR, MUHASIB	Domestic 18%	8	Deductible
VEKIL, LAWYER	Domestic 18%	8	If business matter

3.8 Payroll and exclusions

Payroll and exclusions patterns

Pattern	Treatment	Notes
EMEK HAQQI, SALARY	EXCLUDE	Wages
DIVIDEND	EXCLUDE	Out of scope
DAXILI, INTERNAL, OWN TRANSFER	EXCLUDE	Internal
ATM, NAGD, CASH	TIER 2 — ask	Default exclude

Section 4 — Worked examples

Example 1 — Non-resident SaaS reverse charge

Input line: 03.04.2026 ; NOTION LABS INC ; DEBIT ; Subscription ; USD 16.00 ; AZN 27.20

Reasoning: US entity. Reverse charge at 18%. Box 5/6 (output), Box 10 (input credit). Net zero.

Example 1 table

Date	Counterparty	Gross	Net	VAT	Rate	Box (in)	Box (out)	Default?
03.04.2026	NOTION LABS INC	-27.20	-27.20	4.90	18%	10	5/6	N

Example 2 — Domestic utility

Input line: 10.04.2026 ; AZERCELL ; DEBIT ; Mobile April ; -35.00 ; AZN

Example 2 table

Date	Counterparty	Gross	Net	VAT	Rate	Box	Default?
10.04.2026	AZERCELL	-35.00	-29.66	-5.34	18%	8	N

Example 3 — Entertainment blocked

Input line: 15.04.2026 ; RESTORAN SHIRVANSHAH ; DEBIT ; Dinner ; -180.00 ; AZN

Example 3 table

Date	Counterparty	Gross	Net	VAT	Rate	Box	Default?	Excluded?
15.04.2026	RESTORAN SHIRVANSHAH	-180.00	-180.00	0	—	—	Y	"Entertainment: blocked"

Example 4 — Export (zero-rated)

Input line: 22.04.2026 ; TECHCORP LLC ; CREDIT ; IT services ; +8,500.00 ; AZN

Example 4 table

Date	Counterparty	Gross	Net	VAT	Rate	Box	Default?	Question?
22.04.2026	TECHCORP LLC	+8,500	+8,500	0	0%	3	Y	"Verify export docs"

Example 5 — Motor vehicle blocked

Input line: 28.04.2026 ; BAKU AUTO ; DEBIT ; Car lease ; -850.00 ; AZN

Example 5 table

Date	Counterparty	Gross	Net	VAT	Rate	Box	Default?	Excluded?
28.04.2026	BAKU AUTO	-850.00	-850.00	0	—	—	Y	"Vehicle: blocked"

Example 6 — Import of goods

Input line: 25.04.2026 ; CUSTOMS ; DEBIT ; Import EDV machinery ; -3,600 ; AZN

Example 6 table

Date	Counterparty	Gross	Net	VAT	Rate	Box	Default?
25.04.2026	CUSTOMS	-3,600	-3,051	-549	18%	9	N

Section 5 — Tier 1 classification rules (compressed)

5.1 Standard rate 18% (Tax Code Article 175)

• Unknown rate on a sale — 18%

5.2 Zero rate

• Zero rate supplies — Exports, international transport, diplomatic supplies, certain agricultural produce. Box 3.

5.3 Exempt supplies

• Exempt supplies — Financial services, insurance, medical, educational, residential rental, public transport, postal.

5.4 Reverse charge — non-resident services (Article 169)

• Reverse charge non-resident services — Self-assess at 18%. Box 5/6 (output), Box 10 (input credit). Net zero for fully taxable. (Article 169)

5.5 Import EDV

• Import EDV — At customs. Base = customs value + duties. 18%. Box 9. Recoverable.

5.6 Blocked input EDV

• Blocked input EDV categories — Passenger vehicles, entertainment, personal consumption, no valid invoice, for exempt supplies.

5.7 Credit notes

• Credit notes — Both parties adjust in current period.

Section 6 — Tier 2 catalogue (compressed)

6.1 Fuel/vehicles — Default: 0%. Question: "Car or commercial?"

• Fuel/vehicles — Default: 0%. Question: "Car or commercial?"

6.2 Entertainment — Default: block.

• Entertainment — Default: block.

6.3 SaaS entities — Default: reverse charge. Question: "Check invoice."

• SaaS entities — Default: reverse charge. Question: "Check invoice."

6.4 Owner transfers — Default: exclude. Question: "Sale or own money?"

• Owner transfers — Default: exclude. Question: "Sale or own money?"

6.5 Foreign incoming — Default: zero-rated. Question: "Export docs?"

• Foreign incoming — Default: zero-rated. Question: "Export docs?"

6.6 Large purchases — Question: "Fixed asset?"

• Large purchases — Question: "Fixed asset?"

6.7 Mixed-use phone — Default: 0%. Question: "Business line?"

• Mixed-use phone — Default: 0%. Question: "Business line?"

6.8 Cash withdrawals — Default: exclude.

• Cash withdrawals — Default: exclude.

6.9 Rent — Default: no EDV. Question: "Commercial with EDV?"

• Rent — Default: no EDV. Question: "Commercial with EDV?"

Section 7 — Excel working paper template

Per vat-workflow-base Section 3 with Azerbaijan-specific box codes.

Section 8 — Azerbaijani bank statement reading guide

CSV conventions. Kapital Bank and PASHA Bank exports use semicolon delimiters, DD.MM.YYYY dates.

Azerbaijani terms. Emek haqqi (salary), faiz (interest), kredit (loan), nagd (cash), daxili (internal), gomruk (customs), sigorta (insurance).

Internal transfers. Between client's Kapital, PASHA, IBA accounts. Always exclude.

Foreign currency. Convert to AZN at the Central Bank of Azerbaijan rate.

IBAN prefix. AZ = Azerbaijan.

Section 9 — Onboarding fallback

9.1 Entity type — Fallback: "Sole trader or company?"

• Entity type — Fallback: "Sole trader or company?"

9.2 EDV registration — Fallback: "VAT payer or simplified regime?"

• EDV registration — Fallback: "VAT payer or simplified regime?"

9.3 VOEN — Fallback: "What is your VOEN?"

• VOEN — Fallback: "What is your VOEN?"

9.4 Period — Inference: statement dates.

• Period — Inference: statement dates.

9.5 Industry — Fallback: "What does the business do?"

• Industry — Fallback: "What does the business do?"

9.6 Exempt supplies — If yes, R-AZ-3 fires.

• Exempt supplies — If yes, R-AZ-3 fires.

9.7 Credit B/F — Always ask.

• Credit B/F — Always ask.

9.8 Cross-border — Fallback: "Customers outside Azerbaijan?"

• Cross-border — Fallback: "Customers outside Azerbaijan?"

Section 10 — Reference material

Sources

1. Tax Code of Azerbaijan — Articles 159-184
2. State Tax Service — https://www.taxes.gov.az
3. Central Bank of Azerbaijan — https://www.cbar.az

Change log

• v2.0 (April 2026): Full rewrite to Malta v2.0 10-section structure.

End of Azerbaijan VAT (EDV) Skill v2.0

Disclaimer

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