1.1. This Document defines rules for the return of amounts wrongly charged from the taxpayer or the overpayments of taxes, interests and financial sanction (hereinafter referred to as overpayments to budget.

1.2. «Authorities providing the payments of taxes to the budget» for the purposes of this Rules are the authorities that control the payment of taxes to the budget in complete and timely manner.

The taxpayer holds the right within 5 years upon the completion of tax reporting period to request the return of amounts of wrongly withheld or overpaid taxes, interests and financial sanctions or their transfer for the payments of other taxes, interests and financial sanctions and arrears of administrative penalties or with the taxpayer’s consent their accounting for future obligations.

The tax paid by persons engaged in passenger and cargo transportation by road transport will not be refunded to them, regardless of whether they carried out activities in a given month and is not reckoned toward taxes of next month.

3.1. To return overpayments made to the budget the taxpayer shall apply to tax authorities that provide the payment of taxes to the budget. The application shall indicate the Taxpayer’s Identification Number (TIN), the amount of overpayments, dates and reasons for their occurrence.

3.2. Application for return of excess payments must be submitted to the authorities, ensuring receipt of taxes in the budget, which registered the taxpayer.

3.3. In cases when international treaties on avoidance of double taxation with the participation of the Azerbaijan Republic provide for reduced taxes or full exemption from taxes, a resident of a foreign state must submit to the authorities, ensuring the receipt of taxes in the budget, which registered the tax agent, an application on the return of the amount of tax withheld at source of payment on the basis of Article 125 of the Tax Code, with attached documents, officially confirming his residency.

3.4. The application form referred to in paragraphs 3.1 and 3.3 of these Regulations shall be approved by the Ministry of Taxes of the Azerbaijan Republic and the State Customs Committee of the Azerbaijan Republic on agreement with the Ministry of Finance of the Azerbaijan Republic.

4.1. Goods and services intended for the official use of foreign diplomatic and similar representations, personal use of their diplomatic, administrative and technical staff, including members of their families, shall be subject to value added tax at zero (0) rate.

4.2. To return the value added tax, paid for goods, works and services intended for the official use of foreign diplomatic and similar representations, personal use of their diplomatic, administrative and technical staff, including members of their families, foreign diplomatic and similar representations shall submit the application to the authorities providing the payment to the budget.

The application shall indicate the name of the country of organization represented by the diplomatic or similar office, its TIN, banking address, amount requested for return. Invoices, confirming the payment of the value added tax, the list of representative office staff and family members shall be attached to the application.

4.3. The lists of the diplomatic and similar representations, their diplomatic, administrative and technical staff, including their family members shall include their names, surnames, positions, numbers and colors of their accreditation cards (to be filled based on the representation staff member’s accreditation card).

5.1. Authorities that provide the payments of taxes to the budget shall provide the following upon the taxpayer’s application:

5.2. The 45 days period established for the return of overpayments made to the budget shall cover the period from the date of submission of application by the taxpayer to the date of leaving funds from the account of appropriate state office.

5.3. If the taxpayer transfers overpayments made to the budget to cover for other taxes, interests financial sanctions and administrative penalties, authorities providing the payment of taxes to the budget, at the request of the taxpayer shall furnish him with the extract from the personal list and the act of reconciliation as well as quarterly within 20 days after the quarter shall issue the notification to him to the address registered as the last address of the taxpayer - legal entity in the document of the state of registration or the taxpayer – physical entity in the records.

5.4. For the taxpayer with not less than 50 percent of taxable turnover charged for the value added tax at zero (0) rate within the reporting period, the portion of the tax amount exceeding the calculated amount of tax compensated within the reporting period, shall be returned within 45 days from the date of submission of application to authorities providing the payment of taxes to the budget.

For other taxpayers the portion of compensated tax amount, exceeding the calculated tax amount within the tax period shall be transferred for another five months and comprise the payments for these months and any remains of exceeding amounts shall be returned upon this period within 45 days based on taxpayer’s application.

5.5. Authorities providing the tax payment to the budget shall make 4 copies of the conclusion on return of overpayments of the taxpayer made to the budget and on diplomatic and similar representations in accordance with pro-forma approved by the Ministry of finance of the Azerbaijan Republic.

The conclusion shall be approved in accordance with the established order and reflect overpaid amounts on separate types of taxes as well absence of debts on other taxes, interests financial sanctions and administrative penalties.

5.6. If necessary the authorized representative of authorities providing payment of taxes to budget may send an enquiry on payment of taxes to the executive officer of diplomatic and similar office or the staff member (as well as authorized representative) as well as the taxpayer providing goods (works, services).

5.7. 2 copies of the conclusion and a copy of the application within 25 days from the date of receipt of the taxpayer's application shall be sent to the relevant local financial authority, to which must be returned excess payment, 1 copy – to taxpayer, having excessive payments to the budget, 1 copy must be remained in the authority, ensuring receipt of taxes in the budget.

5.8. Overpaid amounts actually returned in the result of conclusion made shall be reflected on account card of the taxpayer shall be based on official information of financial authorities and taken into consideration in the reports on budget incomes.

5.9. If certain overpaid amounts of the taxpayer to the budget are accounted for the payment of other taxes, interests financial sanctions and administrative penalties authorities that provide the payment of taxes into the budget shall after the completion of each quarter before 10^th of following month submit the appropriate information to financial authority.

5.10. For all cases of the wrong return to the taxpayer of indicated amounts authorities providing the payment of taxes to the budget shall request the return of this amounts in accordance with procedure established for taxation.

6.1. Financial authorities accept the conclusions submitted by the authorities, ensuring receipt of taxes in the budget, which registered the taxpayer.

6.2. If the enquiry sent to return centralized incomes, one copy of the conclusions and copy of the application, submitted to the local financial authorities shall be submitted to the Ministry of Finance of the Azerbaijan Republic within 5 days.

6.3. The financial authorities should provide a refund depending on the taxpayer's registration at the authorities, ensuring receipt of taxes in the budget and the inclusion of taxes in accordance with the budget legislation to local and district revenues.

6.4. Within 5 days financial authorities shall inform the authorities on providing the tax payments to the budget on return of overpaid amount.

6.5. The income of the state budget shall be decreased for the actual amount of returned overpayments made to the budget.

7.1. From the date of submission by the taxpayer of application on return of overpaid amounts to the budget to the authority providing the payment of taxes until the return of overpaid amounts interest shall be paid to the taxpayer for each day of the delay of payment (including day of payment) at the rate of 0.05 percent of the relevant amount. The payment of these interests shall accounted for decrease of budgetary incomes.

If the amount is returned within 45 days from the date of submission of application on return of the overpaid taxes to the authority providing the payment of taxes to the budget the interest shall not be paid.

7.2. In case if the delay of overpaid taxes to the budget shall happen due to some non-compliance of the taxpayer with rules interests shall not be paid for the delay.