17:31 - 17.11.2021
November 17, Fineko/abc.az. The next proposed amendments to the Tax Code consist of changes aimed at reducing the cost elements affecting the cost of agricultural products, and thus creating an economic basis for lowering prices in the domestic market.
ABC.AZ reports that the draft amendment proposes to exempt from VAT the calculations of VAT from trade surcharges for wholesale and retail sale of agricultural products, as well as the provision of agricultural machinery for operational leasing and agrotechnical services related to the production of agricultural products for two years from 1 January 2022.
The first change in this direction is the accrual of VAT along the entire chain of sales of agricultural products on the applied trade value added, and not on the full value of these products.
Since, in the current situation, agricultural goods purchased from the manufacturer were purchased under a transaction exempt from VAT, the subsequent sale of these goods was subject to VAT at the rate of 18%.
As a result of the proposed change, a basis will be created for lowering prices for agricultural products produced in the country, since VAT will be charged on the commercial value added of these goods.
