BAKU, Azerbaijan, May 8. The State Tax Service
(STS) under Azerbaijan’s Ministry of Economy is continuing efforts
to expand taxation in the e-commerce sector by registering foreign
digital service providers for value-added tax (VAT) purposes as
part of ongoing reforms, Trend reports citing STS.
Three additional international companies were electronically
registered through the agency’s online portal in 2026.
The newly registered companies are Switzerland-based Epic Games
Commerce GmbH, Germany’s Contabo GmbH, and U.S.-based Chess.com
LLC. This brings the total number of non-resident digital service
providers registered electronically for VAT purposes to 10.
The registration means that individuals purchasing services from
these companies will no longer be subject to additional VAT charges
withheld by banks. Under Articles 33.8-1 and 169.8 of the Tax Code,
banks will no longer calculate and collect extra VAT amounts from
customers’ funds when payments are made to these companies.
The STS noted that the VAT registration process for non-resident
companies has been carried out since last year through a dedicated
portal created within the agency’s Internet Tax Administration
system. Developed in line with international practices, the portal
is designed to provide multinational e-commerce companies with
remote and simplified tax registration options while ensuring the
declaration and payment of VAT obligations in countries where they
operate and generate economic value.
The State Tax Service said it continues to implement measures to
ensure the sustainability of the process. The initiative is
considered important for expanding the tax base in digital
services, improving tax administration, and promoting a fair
competitive environment.
