- Azerbaijan is shifting from a VAT withholding model to mandatory VAT registration for non-resident digital service providers.
- From January 1, 2026, foreign suppliers with over $10,000 in annual local sales must register for VAT, charge it to customers, and remit it to Azerbaijani authorities.
- The previous system, introduced in 2017, relied on payment providers to withhold VAT, but this will be fully replaced by the new registration requirement.
Source: fiscalsolutions.co.uk
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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