Azerbaijan has introduced the Tax Free system in a test mode, the country's Taxes Ministry told on June 17.

"Relevant documents have been submitted for approval and currently, the system is introduced in a test mode," said the ministry.

Tax free is a mechanism of refunding VAT paid by the foreign citizens during purchase of goods not designed for production or commercial needs.

Foreign citizens can benefit from TAX FREE, if the cost of purchased goods per one e-tax invoice is not less than 300 Azerbaijani manats, including VAT.

The goods should be taken out of Azerbaijan's territory within 90 days from the date of purchase.

Standard VAT rate in Azerbaijan is 18 percent. Regardless of the transfer method, foreign citizens will be refunded the amount of VAT paid for the purchased goods after withholding 20 percent service fee.