Millions of manats in VAT refunded to foreign tourists in nine months
In January–September 2026, millions of manats in VAT were refunded to foreign citizens through the "Tax free" system. An official statement says this did not harm the budget.
The amount of value-added tax refunded to foreign citizens in Azerbaijan through the "Tax free" system has come back onto the agenda. According to official data, in January–September 2026, millions of manats in VAT were refunded to foreign citizens for goods they purchased in the country for personal consumption.
An official body has issued a statement on the question raised around the topic: the refunded funds do not harm the budget.
Since "Tax free" mainly applies to purchases of goods, its direct impact on the restaurant, cafe and hotel business is limited. The indirect effect, however, is real: the refunded amount stays in the tourist's pocket and is often spent on food, accommodation and other services.