VAT exemption introduced...
The amendment to the Tax Code, which took effect on 1 April, 2023, introduced a new article, 164.1.8-1. This states that non-resident entities without permanent representation in the Republic of Azerbaijan are exempt from VAT for three years starting from 1 January, 2023, when presenting media products or providing works and services related to media activity. The exemption does not apply to audiovisual media. Additionally, material aid provided to media subjects by the relevant state body is also exempt from taxes during the same period. This change is expected to have a positive impact on civil society organisations (CSOs) that are involved in media-related activities, particularly those publishing print materials, receiving aid and providing services concerning their media activities.
...but harsher penalties applied for violations of media laws
On 25 April, 2023, the new versions of articles 381 and 388 of the Code of Administrative Offenses (CAO) came into effect. The revised article 381 expands the responsibilities for violations and imposes stricter and higher penalties on CSOs conducting media activities. In general, the penalties range from approximately 115 USD (200 manats) to 5900 USD (10,000 manats). Such amounts could be burdensome for CSOs engaged in media-related activities considering their limited human and financial resources. The main objective of Article 388 is to safeguard the rights of media subjects and journalists. The new article introduces penalties for obstructing access to information or failing to provide. Journalists can be fined from 115 USD (200 manats) to 1800 USD (3000 manats) for disseminating prohibited information or disclosing their sources, if prohibited by law.