Measures are continuing in Azerbaijan to tax the digital economy and improve tax administration in this area. The tax registration of three more international digital service providers through the electronic registration portal of the State Tax Service (STS) under the Ministry of Economy has been completed, the State Tax Service told APA-Economics.
The newly registered companies are the Netherlands-based Zoho Corporation B.V., the US-based Zoom Communications, Inc. and OpenAI OpCo, LLC. The VAT registration of these companies will take effect on September 1, 2026.
According to amendments made to the Tax Code this year, starting from September 2026, non-resident digital service providers that provide services in Azerbaijan through e-commerce and have an annual turnover in the country exceeding USD 10,000 will be required to register electronically with the tax authority.
Registered non-resident digital service providers independently fulfill their VAT obligations by calculating, declaring and paying the tax to the state budget. In this case, VAT on payments made to these providers is not withheld by banks. The new mechanism serves to improve tax administration in the field of digital services, facilitate the fulfillment of tax obligations and increase transparency.
The State Tax Service continues information and communication activities with non-resident digital service providers offering services in Azerbaijan through e-commerce, as well as the process of registering these providers. The list of registered non-resident digital service providers can be viewed by visiting the official website of the State Tax Service.
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