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Who pays VAT on non-resident services?
Who pays VAT on non-resident services?
If a non-resident not registered for VAT purposes provides services (including electronic services) within the territory of the Republic of Azerbaijan to a tax agent — except for hotel and airline ticket booking services rendered outside Azerbaijan — such services or works are subject to VAT.
The time of the VAT-taxable transaction is considered the moment of payment. If payment is made before the service is rendered or the work is completed, the transaction is considered to have taken place at the time of payment.
According to Article 169.5 of the Tax Code, if the tax agent is not registered for VAT purposes, they must pay the calculated VAT within 7 days after making the payment to the non-resident and submit a VAT return in the prescribed form by the 20th day of the following month.
The amount payable to the non-resident is not considered a taxable operation under the agent’s VAT registration. When paying VAT to the budget, the tax agent must note in the payment documents that the VAT was calculated from the amount paid to the non-resident.
If a non-resident not registered for VAT purposes provides services (including electronic services) within the territory of the Republic of Azerbaijan to a tax agent — except for hotel and airline ticket booking services rendered outside Azerbaijan — such services or works are subject to VAT.
The time of the VAT-taxable transaction is considered the moment of payment. If payment is made before the service is rendered or the work is completed, the transaction is considered to have taken place at the time of payment.
According to Article 169.5 of the Tax Code, if the tax agent is not registered for VAT purposes, they must pay the calculated VAT within 7 days after making the payment to the non-resident and submit a VAT return in the prescribed form by the 20th day of the following month.
The amount payable to the non-resident is not considered a taxable operation under the agent’s VAT registration. When paying VAT to the budget, the tax agent must note in the payment documents that the VAT was calculated from the amount paid to the non-resident.