Measures continue in Azerbaijan to tax the digital economy and improve tax administration in this area.

Operativ Media reports, citing the State Tax Service (STS).

Three more international digital service providers have completed their tax registration through the electronic registration portal of the State Tax Service under the Ministry of Economy.

The newly registered companies are Zoho Corporation B.V. (Netherlands), Zoom Communications, Inc. (US), and OpenAI OpCo, LLC (US). Their registration for VAT purposes will take effect on September 1, 2026.

According to amendments made to the Tax Code this year, starting September 2026, electronic registration with the tax authority will be mandatory for non-resident digital service providers operating via e-commerce in Azerbaijan whose annual turnover in the country exceeds $10,000.

Registered non-resident digital service providers will independently calculate, declare, and pay VAT to the state budget.

In this case, VAT on payments made to these providers is not withheld by banks. The new mechanism aims to improve tax administration in the digital services sector, simplify compliance, and increase transparency.

The State Tax Service continues its outreach and communication with non-resident digital service providers offering e-commerce services in Azerbaijan, as well as the registration process for these providers.

The list of registered non-resident digital service providers is available on the official website of the State Tax Service: https://www.taxes.gov.az/az/page/reqemsal-iqtisadiyyat-uzre-vergitutma