11:41 - 9.12.2024

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December 9, Fineko/abc.az. One of the changes to be made to the Tax Code is exemption from VAT of the rent charged by legal entities for the lease of land. So, starting from next month, the lease of land plots will not be subject to VAT.

ABC.AZ informs that MP and economist Vugar Bayramov wrote about this on his social network account.

It was noted that this change is stimulating and will lead to a reduction in the costs of entrepreneurs and an increase in their income.

Thus, entrepreneurs offering land leases are exempt from VAT.

On the other hand, this may affect the cost of renting land, as well as the costs of entrepreneurs. So, when determining the rent for the land, the parties agreed on an 18% tax. Despite the fact that this tax is paid by a legal entity, at the time of agreement by the parties, this cost was in most cases taken into account in the price. Since the VAT exemption has been in effect since the new year, this may lead to a reduction in land rents. In general, this change will serve both to strengthen accounting and to support entrepreneurs," he added.