Azerbaijan Mandates VAT Registration for Nonresident Digital Service Providers Effective August 2026

• Azerbaijan has introduced mandatory VAT registration and collection for nonresident electronic service providers, effective August 23, 2026.
• The new rules apply to nonresidents supplying electronic services to Azerbaijani customers not registered for VAT, with certain services excluded.
• VAT registration is required within 30 days if annual gross sales to Azerbaijan exceed the AZN equivalent of US$10,000; otherwise, registration is optional.
• The regime targets B2C transactions, not B2B.
• Further regulatory guidance on compliance and reporting is expected.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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