Azerbaijan registers four international companies for VAT compliance

The State Tax Service of Azerbaijan has registered four additional international companies for VAT purposes as part of reforms to improve tax regulations within the digital economy. The newly registered entities include US-based Xsolla (USA), Inc. and Valve Corporation, as well as the UK-based Formula One Digital Media Limited and Germany-based Cleverbridge GmbH.

Under recent amendments to the Tax Code, non-resident digital service providers with an annual turnover in Azerbaijan exceeding 10,000 USD are required to register electronically. The registration for Valve Corporation and Cleverbridge GmbH will take effect on September 1, while the other companies are already registered. These measures aim to simplify tax obligations for international digital platforms, foster a level playing field, and increase transparency in the digital economy. Registered companies are responsible for calculating, declaring, and paying VAT directly to the state budget.