Azerbaijan registers 10 foreign digital platforms for tax

Through its newly established electronic registration system, the State Tax Service (STS) under the Ministry of Economy of Azerbaijan has officially registered 10 foreign digital service providers for tax purposes, Report informs, citing the STS.

Among the registered companies are Apple, Adobe, Sony Interactive Entertainment, Epic Games, Chess.com, and other internationally recognized platforms.

According to amendments to the Tax Code, starting from September 2026, all non-resident digital service providers offering electronic commerce services in Azerbaijan with an annual turnover exceeding $10,000 must undergo mandatory electronic registration with the tax authorities.

The changes aim to simplify tax obligations for international digital platforms, ensure a level playing field, and enhance transparency in the digital economy.

For registered providers, VAT is no longer withheld by banks from customers' accounts. Instead, companies themselves calculate, declare, and pay VAT directly to the state budget.

The regulation applies only to digitally delivered services, not to physical goods sold or delivered via online platforms.

The growing number of registered international companies reflects trust in Azerbaijan's tax system. The State Tax Service continues efforts to support the development of the digital economy and create a transparent business environment.