Taxpayer debt to state budget in Azerbaijan exceeds AZN3 billion

As of January 1, 2025, taxpayers in Azerbaijan owed just over 3.12 billion manats (over $1.835 billion) to the state budget, marking a 12.2% year-on-year increase, Report informs, referring to the State Tax Service (STS) under the Ministry of Economy.

Additionally, as of the reporting date, overpayments totaled more than 2.225 billion manats (nearly 1.31 billion).

In 2024, a total of 431.4 million manats ($253.7 million) in tax refunds were issued.

By the end of 2024, tax arrears accounted for 19.7% of total tax revenues. According to the IMF's Tax Administration Diagnostic Assessment Tool (TADAT), if total tax debt remains below 20% of annual tax revenue, the administration is considered to be functioning at an acceptable level.

Overpayments made up 14.1% of total tax collections. These primarily resulted from positive VAT balances-generated through offsetting electronic invoices for domestically acquired goods and reimbursed VAT paid on imports.