Expense management module › Global expense management › Azerbaijan
Last updated : 11.05.2026
Expense rules in Azerbaijan.
Azerbaijan applies VAT at 18%. Caspian oil country, regional hub, e-VAT mandatory.
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1Expense rules & reclaimable VAT
VAT 18% single rate. AZN pegged to USD (1.7 = 1).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 18% | Deductible | e-VAT + VOEN |
| Lodging | 18% | Deductible | VOEN |
| Alcohol | 18% | Limited | Excluded |
| Fuel | 18% | Deductible | e-VAT |
| Transport | 18% | Deductible | Taxi/Bolt/airfare |
| Gifts | 18% | Non-deductible | Cap |
Receipt
e-VAT
VOEN mandatory
SourcesAzerbaijan Ministry of Taxes
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | e-VAT |
| Company car | – | Card | – |
| Taxi/Bolt | – | 100% receipt | e-VAT |
Tracking
Logbook
Date, distance
SourcesAzerbaijan Ministry of Taxes
3Per diem and travel allowances
Company policy. Baku very expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Baku | AZN 40 | AZN 130 | AZN 220 |
| Ganja | AZN 30 | AZN 95 | AZN 160 |
| Sumqayit | AZN 28 | AZN 90 | AZN 150 |
| Other | AZN 25 | AZN 80 | AZN 135 |
Conversion
~1 EUR = 1.8 AZN
USD peg
SourcesAzerbaijan Ministry of Taxes
4Foreign VAT recovery
Residents only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident | Credit | Monthly | Return |
| Non-resident | None | – | Final cost |
| Oil/Industrial | Conventions | Per contract | PSA |
Limitations
3 years
Keep
SourcesAzerbaijan Ministry of Taxes
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