BAKU, Azerbaijan, August 13. As part of reforms
aimed at improving tax regulations in Azerbaijan’s digital economy,
the State Tax Service under the Ministry of Economy continues
registering foreign digital service providers for tax purposes
through an electronic registration system it established.
According to the Service, four more international companies have
registered electronically through the State Tax Service’s portal
this year.
They are U.S.-based Xsolla (USA), Inc. and Valve Corporation,
the U.K.’s Formula One Digital Media Limited and Germany’s
Cleverbridge GmbH. The VAT registrations of Valve Corporation and
Cleverbridge GmbH will take effect on Sept. 1, 2026. The
registrations of the other companies have already taken effect.
Under amendments to the Tax Code made this year, starting in
September, electronic tax registration with the tax authority will
become mandatory for nonresident digital service providers that
provide services in Azerbaijan through e-commerce and whose annual
turnover in the country exceeds $10,000.
The amendments are aimed at simplifying compliance with tax
obligations for international digital platforms, creating a level
playing field and increasing transparency in the digital
economy.
“When digital services are purchased from nonresident digital
service providers registered with the tax authority, banks do not
withhold VAT from the buyers’ accounts. Registered companies
calculate, declare and pay the VAT themselves to the state budget,”
the agency said.
