- Azerbaijan is introducing a new VAT system for non-resident digital service providers, replacing the current bank-based withholding approach for untaxed foreign B2C digital supplies.
- From September 1, 2026, VAT registration becomes mandatory once B2C digital service sales in Azerbaijan exceed USD 10,000 per year; until then, registration is voluntary.
- Non-resident providers must register, file VAT returns, and remit VAT through a simplified online tax portal operated by the State Tax Service.
- The rules apply only to B2C digital services; B2B transactions are handled under the normal VAT rules by the local VAT-registered recipient.
- Covered services include e-books, music, videos, images, games, software, online ads, and similar electronic services.
Source: 1stopvat.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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