Two more international digital service providers, Spotify AB of Sweden and TikTok Pte. Ltd. of Singapore, have been registered for tax purposes in Azerbaijan through the electronic registration portal of the State Tax Service under the Ministry of Economy, the State Tax Service told APA-Economics.
The VAT registration of both companies took effect on October 1, 2026.
The State Tax Service said banks will not withhold VAT on payments made for services provided by registered non-resident digital service providers. In such cases, the companies themselves will calculate, declare and pay VAT to the state budget.
The integration of international digital service providers into the electronic registration system is one of the key outcomes of preparations for the implementation of a new taxation mechanism for the digital economy.
The State Tax Service said it continues its efforts to develop modern tax administration and a transparent business environment in the digital economy, as well as to introduce convenient mechanisms for fulfilling tax obligations.
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