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Azerbaijan may exempt buses imported and sold by industrial parks from VAT
Azerbaijan may exempt buses imported and sold by industrial parks from VAT
Buses imported and sold by industrial parks in Azerbaijan may be exempt from value-added tax (VAT). This proposal is reflected in the draft 2026 budget package.
Accordingly, amendments to the Tax Code are planned.
Under the proposed changes, based on a certificate issued by the relevant authority, the import of seatless, handrail-free, and monitor-free electric buses by industrial park residents for industrial production (assembly) purposes, as well as the sale of those buses after installing seats, handrails, and monitors, will be exempt from VAT for one year starting from January 1, 2026.
In addition, the sale of passenger cars produced in Azerbaijan — provided that full industrial assembly and technological operations such as painting and welding are carried out — will be exempt from VAT for seven years starting from January 1, 2027.
Furthermore, the sale of domestically produced buses and trucks, as well as the import of spare parts for these vehicles for production purposes by legal entities (based on the relevant authority’s approval), will be exempt from VAT — for buses from January 1, 2025, for eight years, and for trucks from January 1, 2026, for seven years.
Buses imported and sold by industrial parks in Azerbaijan may be exempt from value-added tax (VAT). This proposal is reflected in the draft 2026 budget package.
Accordingly, amendments to the Tax Code are planned.
Under the proposed changes, based on a certificate issued by the relevant authority, the import of seatless, handrail-free, and monitor-free electric buses by industrial park residents for industrial production (assembly) purposes, as well as the sale of those buses after installing seats, handrails, and monitors, will be exempt from VAT for one year starting from January 1, 2026.
In addition, the sale of passenger cars produced in Azerbaijan — provided that full industrial assembly and technological operations such as painting and welding are carried out — will be exempt from VAT for seven years starting from January 1, 2027.
Furthermore, the sale of domestically produced buses and trucks, as well as the import of spare parts for these vehicles for production purposes by legal entities (based on the relevant authority’s approval), will be exempt from VAT — for buses from January 1, 2025, for eight years, and for trucks from January 1, 2026, for seven years.