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Are residents of Nakhchivan exempt from VAT when importing raw materials?
Are residents of Nakhchivan exempt from VAT when importing raw materials?
Our company operates in the Nakhchivan Autonomous Republic and is engaged in the processing industry. Raw materials and supplies are imported from foreign countries. Considering that certain tax incentives have been introduced for taxpayers resident in the Nakhchivan Autonomous Republic as of 2026, is the import of such raw materials and supplies exempt from VAT?
According to the State Tax Service under the Ministry of Economy, pursuant to Articles 227.2-1 to 227.2-3 of the Tax Code, which entered into force on January 1, 2026, the VAT exemption on imports for residents of the Nakhchivan Autonomous Republic applies to legal entities and individual entrepreneurs that have obtained an investment promotion certificate and are residents of industrial districts, industrial parks, or technology parks located within the territory of the Nakhchivan Autonomous Republic.
Accordingly, if a resident enterprise of the Nakhchivan Autonomous Republic possesses an investment promotion certificate or is a resident of an industrial district, industrial park, or technology park located in the Nakhchivan Autonomous Republic, VAT exemption may be applied to the imported raw materials and supplies on the basis of a supporting document issued by the Ministry of Economy of the Nakhchivan Autonomous Republic.
Legal basis: Articles 227.2-1, 227.2-2, and 227.2-3 of the Tax Code.
Our company operates in the Nakhchivan Autonomous Republic and is engaged in the processing industry. Raw materials and supplies are imported from foreign countries. Considering that certain tax incentives have been introduced for taxpayers resident in the Nakhchivan Autonomous Republic as of 2026, is the import of such raw materials and supplies exempt from VAT?
According to the State Tax Service under the Ministry of Economy, pursuant to Articles 227.2-1 to 227.2-3 of the Tax Code, which entered into force on January 1, 2026, the VAT exemption on imports for residents of the Nakhchivan Autonomous Republic applies to legal entities and individual entrepreneurs that have obtained an investment promotion certificate and are residents of industrial districts, industrial parks, or technology parks located within the territory of the Nakhchivan Autonomous Republic.
Accordingly, if a resident enterprise of the Nakhchivan Autonomous Republic possesses an investment promotion certificate or is a resident of an industrial district, industrial park, or technology park located in the Nakhchivan Autonomous Republic, VAT exemption may be applied to the imported raw materials and supplies on the basis of a supporting document issued by the Ministry of Economy of the Nakhchivan Autonomous Republic.
Legal basis: Articles 227.2-1, 227.2-2, and 227.2-3 of the Tax Code.