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Several global digital service providers have registered for VAT in Azerbaijan
Azerbaijan continues to implement measures aimed at taxing the digital economy and improving tax administration in this area. Through the electronic registration portal of the State Tax Service under the Ministry of Economy, four more international digital service providers have been registered for tax purposes.
The registered companies are the US-based “Anthropic, PBC” and “Aghanim Inc.”, Switzerland-based “eBay Marketplaces GmbH”, and the Netherlands-based “Netflix International B.V.”. Their VAT registration will take effect from September 1, 2026.
According to amendments made to the Tax Code this year, starting from September 2026, electronic registration with the tax authority will be mandatory for non-resident digital service providers that provide services electronically in Azerbaijan and have an annual turnover in the country exceeding USD 10,000.
VAT on payments made to registered non-resident digital service providers will not be withheld by banks. These companies will calculate the VAT themselves, file the relevant declarations, and pay the tax to the state budget.
The inclusion of international digital service providers in the electronic registration system is one of the important outcomes of preparations for the implementation of the new tax mechanism. The State Tax Service continues its efforts to establish modern tax administration and a transparent business environment in the digital economy.
Azerbaijan continues to implement measures aimed at taxing the digital economy and improving tax administration in this area. Through the electronic registration portal of the State Tax Service under the Ministry of Economy, four more international digital service providers have been registered for tax purposes.
The registered companies are the US-based “Anthropic, PBC” and “Aghanim Inc.”, Switzerland-based “eBay Marketplaces GmbH”, and the Netherlands-based “Netflix International B.V.”. Their VAT registration will take effect from September 1, 2026.
According to amendments made to the Tax Code this year, starting from September 2026, electronic registration with the tax authority will be mandatory for non-resident digital service providers that provide services electronically in Azerbaijan and have an annual turnover in the country exceeding USD 10,000.
VAT on payments made to registered non-resident digital service providers will not be withheld by banks. These companies will calculate the VAT themselves, file the relevant declarations, and pay the tax to the state budget.
The inclusion of international digital service providers in the electronic registration system is one of the important outcomes of preparations for the implementation of the new tax mechanism. The State Tax Service continues its efforts to establish modern tax administration and a transparent business environment in the digital economy.