- New Measures Announced: On July 2, 2024, Azerbaijan’s Cabinet of Ministers implemented new regulations under Articles 33.8-1 and 169.8 of the Tax Code, targeting electronic registration of non-residents involved in e-commerce.
- Scope of Reportable Supplies: The regulations cover digital products such as e-books, music, software, virtual games, digital content, online advertisements, and similar digital services.
- Criteria for VAT Applicability: VAT determination criteria include the recipient’s place of residence, IP address, country phone code, and changes related to the payment institution processing the transaction.
- Registration Requirements: Non-resident businesses earning income from services provided to individuals in Azerbaijan must register electronically for VAT purposes, submit VAT returns, and ensure timely tax payments as per the Tax Code.
- Dedicated E-Tax Platform: The State Tax Service launched an e-tax portal to facilitate electronic tax registration, re-registration, and de-registration for non-residents, streamlining compliance and avoiding penalties for non-compliance.
Source Taxbackinternational
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