Azerbaijan implements new tax registration for non-resident digital platforms

New tax regulations in Azerbaijan now require non-resident electronic commerce platforms to register for tax purposes if their annual turnover in the country exceeds the equivalent of 10,000 US dollars. Companies such as Netflix, eBay, and Anthropic have already been included in the tax registration process.

Under the updated Tax Code, these non-resident entities must complete electronic registration within 30 days of reaching the turnover threshold. For digital services provided to individuals not registered with tax authorities, the non-resident will be responsible for paying VAT to the state budget. However, business users who are already tax-registered must provide their TIN (VÖEN) to the platform; in such cases, the platform will not add VAT to the service price, and the user will calculate and pay the VAT themselves according to existing legislation.

Certain services, such as legal, financial, accounting, design, and engineering services provided via electronic communication, as well as real-time online training and online ticket ordering for cultural or sporting events, are excluded from these specific electronic commerce tax requirements.