- Mandatory VAT Registration: Effective January 1, 2026, all nonresident entities supplying digital services to individuals in Azerbaijan will be required to register for value-added tax (VAT) electronically via the tax authority’s portal.
- Consequences for Non-Compliance: Failure to register by the effective date may lead to administrative penalties and tax liabilities under Azerbaijani law.
- Preparation for Changes: Nonresident businesses should start preparing for the mandatory registration by considering early voluntary registration to facilitate a smoother transition and minimize operational disruptions.
Source EY
