Type: Legislation Update
The Azerbaijan Ministry of Economy State Tax Service introduced VAT liabilities for B2C digital services providers on January 1, 2017. Previously, there was no obligation to VAT register due to the use of VAT Withholding Tax. In June 2024, a new VAT registration portal was launched to streamline the VAT inclusive services process. Despite the parliament accepting a Bill in November 2022 to impose VAT registration on non-residents, this has not yet advanced. The government issued technical implementation regulations in December 2023, which includes no VAT registration threshold. The VAT rate in Azerbaijan is 18%, applicable to various e-services including telecoms, e-books, SaaS, and more.
Effective date: June 2024 (Portal launch)
