During January-February 2026, a total of 25,046,600 manats was refunded from the state budget to individuals and legal entities in Azerbaijan.
Operative Information Center-OMM reports, citing the Ministry of Finance, that these refunds primarily stem from Value Added Tax (VAT) return programs designed to encourage cashless transactions across various sectors.
According to official data, the refunded funds cover payments made by individuals for goods purchased in retail trade and public catering, as well as services in culture (theaters, cinemas, museums, concerts) and medical services. Notably, the figures include VAT refunds for hotel services in the liberated territories of Azerbaijan, as well as tax returns for non-commercial goods purchased by foreigners within the country.
Furthermore, a portion of the VAT paid for residential and non-residential areas purchased via cashless means from entities engaged in building construction was also reimbursed. The total amount also encompasses the return of overpaid taxes, state duties, interests, and financial sanctions.
The VAT refund mechanism, popularly known as "Edvgerial," was launched in Azerbaijan in 2020 to increase transparency in the economy and reduce the scale of the shadow market. By incentivizing consumers to demand receipts and use digital payment methods, the government has successfully integrated significant portions of the retail and service sectors into the formal tax system. The inclusion of special incentives for the Garabagh region further supports the economic revitalization and tourism potential of the liberated provinces.
