BAKU, Azerbaijan, February 23. Azerbaijan is
set to improve the tax registration process for non-resident
individuals involved in electronic commerce, specifically for
value-added tax (VAT) compliance, Trend reports.


The amendments are reflected in changes to the Tax Code of the
Republic of Azerbaijan, as well as the laws “On Banks” and “On
Customs Tariff,” approved by President Ilham Aliyev.


Under the amendments, non-resident entities conducting
e-commerce through internet information resources and earning
income from the provision of works and services to persons not
registered with tax authorities in Azerbaijan must register
electronically for tax purposes within 30 days once their annual
turnover from services supplied to customers in Azerbaijan exceeds
the manat equivalent of $10,000. Electronic registration will
remain voluntary for non-residents whose turnover does not exceed
this threshold. Permanent establishments in Azerbaijan of
non-resident legal or natural persons, as defined by the Tax Code,
are excluded from this requirement.


This provision specifies that services such as consultancy,
legal, financial, accounting, design, and engineering, when
provided through email or other interactive communication tools,
along with real-time online education and training, as well as
online ticket ordering for scientific, educational, cultural,
sports, and entertainment events, will not fall under the category
of electronic commerce services for the purposes of this
article.


The procedure for electronic tax registration, re-registration,
deregistration, VAT registration, submission of VAT returns, and
payment of VAT by non-resident e-commerce operators will be
determined by the authority designated by the relevant executive
body.


Taxpayers will be required to pay VAT related to such registered
non-resident entities to the state budget for each reporting period
no later than the last day of the month following the reporting
period.


The head of state has signed a decree to ensure the implementation of the relevant
law.


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