Azerbaijan is introducing a new tax mechanism for non-resident companies providing electronic services to individuals and entities that are not registered for tax purposes in the country.
Under amendments to the Tax Code, non-resident e-commerce platforms whose annual turnover from electronic services in Azerbaijan exceeds the equivalent of USD 10,000 will be required to register electronically for tax purposes within 30 days. The new requirement will come into force in September 2026.
According to Azerbaijan’s State Tax Service, preparations for the implementation of the new rules are underway, including communication and awareness activities with non-resident digital platforms providing electronic services in the country.
Four more international digital service providers have now been registered for tax purposes: Anthropic, PBC and Aghanim Inc. from the United States, eBay Marketplaces GmbH from Switzerland, and Netflix International B.V. from the Netherlands.
The companies’ VAT registrations will take effect on September 1, 2026.
The new mechanism applies only to electronic services provided to individuals and entities that are not registered with Azerbaijan’s tax authorities. VAT on these digital services will be paid to the state budget by the non-resident service providers.
The scope of covered electronic services includes the online provision of e-books, music, audio and video materials, graphic content, virtual games and software, as well as online advertising and other similar digital services.
