Limit for cashless transactions raised from 200,000 to 400,000 manats — tax official

Azerbaijan has increased the VAT exemption limit for cashless transactions from 200,000 to 400,000 manats, according to Nicat Imanov, head of the Tax Policy Department at the State Tax Service. He spoke during parliamentary discussions on amendments to the Tax Code.

Imanov said the measure aims to promote cashless payments and reduce the shadow economy.

“The share of transactions made through POS terminals is growing every year. Raising the limit to 400,000 manats will further encourage entrepreneurs to expand non-cash payments,” he noted.

Under the draft law, 50 % of turnover processed via POS terminals will qualify for VAT deductions, effectively reducing the applicable VAT rate from 18 % to 9 %.

The new limit will take effect on January 1, 2026.

N.Tabrizli