Azerbaijan issues new contract rulings and registers international digital providers

The Supreme Court of Azerbaijan has issued a new decision aimed at ensuring judicial consistency regarding disputes arising from service contracts. The ruling clarifies the legal nature of such contracts, distinguishing them from service agreements to prevent errors in determining the rights, obligations, and liabilities of parties. It also outlines the legal consequences of failing to comply with the Law on Public Procurement.

In a separate regulatory development, the State Tax Service of Azerbaijan has registered three international digital service providers: Zoho Corporation B.V. (Netherlands), Zoom Communications, Inc. (USA), and OpenAI OpCo, LLC (USA). Under new tax amendments, non-resident digital service providers with an annual turnover exceeding $10,000 in Azerbaijan are required to register electronically. Their VAT obligations are set to take effect on September 1, 2026.