16:38 - 11.08.2026

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August 11, Fineko/abc.az. According to the annual performance report of the State Tax Service under the Ministry of Economy, the VAT compliance gap in Azerbaijan stood at 7.92% in 2025.

Key Trends:

• Compared to 2024: The gap decreased by 0.22 percentage points.

• Compared to 2019: The figure saw a significant reduction of 12.8 percentage points.

The VAT compliance gap measures the difference between potential tax liabilities and actual VAT collected. The ongoing reduction underlines progress in curbing the shadow economy and fostering a fair competitive environment through transparent tax administration.