Global Daily Tax News, Azerbaijan Halves VAT On Certain Entertainment Services, (Jul 9, 2025)

Azerbaijan has introduced a new value-added tax refund mechanism to encourage taxpayers to attend cultural events.

As of July 1, 2025, taxpayers may claim back 50 percent of the value-added tax paid for tickets paid for cultural services, including entry to film screenings, to theatrical performances, and to museums, among others.

VAT will be refunded under the existing mechanism for refunds on business-to-consumer supplies, for non-cash payments only.

Legislation for the measure, which is intended also to boost compliance rates among businesses, was enacted earlier this year.