Azerbaijan digital platform tax regulations

Azerbaijan has introduced new tax regulations targeting non-resident digital platforms. Under the updated Tax Code, electronic commerce entities must register for tax purposes if their annual turnover in the country exceeds the equivalent of 10,000 US dollars.

These non-resident entities are required to 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 platform is responsible for paying VAT to the state budget. Conversely, business users who are already tax-registered must provide their TIN to the platform, in which case the platform will not add VAT to the service price.

Certain services are excluded from these specific electronic commerce tax requirements, including 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.