BAKU, Azerbaijan, August 24. Measures to tax
the digital economy and improve tax administration in the sector
are continuing in Azerbaijan. Four more international digital
service providers have been registered for tax purposes through the
electronic registration portal of the State Tax Service under the
Ministry of Economy.
The State Tax Service said this in a statement.
The registered companies are U.S.-based Anthropic, PBC and
Aghanim Inc., Switzerland-based eBay Marketplaces GmbH, and
Netherlands-based Netflix International B.V. Their VAT registration
will take effect on Sept. 1, 2026.
Under amendments to Azerbaijan's Tax Code adopted this year,
starting in September 2026, nonresident digital service providers
that provide services through e-commerce and generate annual
turnover in Azerbaijan exceeding $10,000 will be required to
register electronically with the tax authorities.
VAT is not withheld by banks on payments made to registered
nonresident digital service providers. The companies themselves
calculate, declare and pay the 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 implementing the new tax mechanism. The State Tax
Service continues efforts to establish modern tax administration
and a transparent business environment in the digital economy.
