In preparation for the implementation of the new rules, the State Tax Service is conducting awareness and communication outreach with non-resident e-commerce platforms providing electronic services in Azerbaijan. The registration process is currently underway.

Operativ Media reports that this was stated by the State Tax Service under the Ministry of Economy in response to an inquiry from AZERTAC.

It was noted that information on registered e-commerce platforms is published on the official website of the State Tax Service, where the list of companies registered to date is available.

“The new mechanism applies only to electronic services provided to persons not registered with tax authorities. Non-residents will pay VAT to the state budget for digital services provided to such persons.

Entities using digital services for business purposes and registered for tax must accurately enter their TIN in the non-resident e-commerce platform's system. When a TIN is entered, the non-resident e-commerce platform does not add VAT to the service cost and does not collect it from the taxpayer; the taxpayer using the service calculates and pays the corresponding VAT to the state budget themselves in accordance with the legislation. Therefore, taxpayers must provide accurate and complete information regarding their tax status when using these services.

Additionally, the scope of electronic services covered by the new mechanism is defined by relevant legislation. Under the Rules approved by Cabinet of Ministers Decision No. 387 dated October 30, 2023, works and services provided within e-commerce include downloading e-books, music, audio and video materials, graphic images, virtual games, and software, placing online advertisements, and other similar services provided via the internet,” the response stated.

It was further noted that four more international digital service providers have been registered for tax through the electronic registration portal of the State Tax Service under the Ministry of Economy.

The registered companies are US-based Anthropic, PBC and Aghanim Inc., Switzerland-based eBay Marketplaces GmbH, and Netherlands-based Netflix International B.V. The VAT registration of these companies will take effect from September 1, 2026.