The agreement between the Government of the Republic of Kazakhstan and the Government of the Azerbaijan Republic on the principles of collection of indirect taxes during the exporting and commodity import (works, services)

of June 10, 1997

The government of the Republic of Kazakhstan and the Government of the Azerbaijan Republic the hereinafter referred to as Contracting Parties, aiming at development of the mutually beneficial economic relations and deepening of economic integration, establishment of equal opportunities for business entities and to creation of conditions for fair competition, being guided by the commonly accepted regulations and rules of international trade, agreed as follows:

Article 1 General determinations

For the purpose of this agreement:

a) the term "indirect taxes" means the value added tax and the excise tax;

b) the term "zero rate" means taxation on value added at the rate of 0% that is equivalent to full relief from the value added tax;

c) the term "principle of the destination" means application of zero rate when exporting from customs area of one Contracting Party and taxation imported (or imported) goods (works, services) at the rate established by the domestic legislation of this Party;

d) the term "one Contracting Party" and "other Contracting Party" means the Republic of Kazakhstan and the Azerbaijan Republic depending on context;

e) the term means "competent authorities" from the Kazakhstan side - the Ministry of Finance of the Republic of Kazakhstan, from the Azerbaijani side - the Ministry of Finance of the Azerbaijan Republic and the Main State Tax Authorities of the Azerbaijan Republic.

The article 2 Principle of Collection of Taxes when exporting

Contracting parties will not assess with indirect taxes the goods (works, services) exported by one Contracting Party to other Contracting Party.

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