BAKU, Azerbaijan, October 1. Sweden’s Spotify
AB and Singapore’s TikTok Pte. Ltd. have been registered for tax
purposes in Azerbaijan, the State Tax Service said today in a
statement.
According to the service, the two digital service providers were
registered through an electronic system established by the State
Tax Service under the Ministry of Economy.
Their VAT registrations took effect on October 1.
Under the new arrangement, banks will no longer withhold VAT on
payments for services provided by registered non-resident digital
service providers. Instead, the companies themselves will
calculate, declare, and pay the VAT to the state budget.
The registration of international digital service providers is
part of Azerbaijan’s efforts to introduce a new tax mechanism for
the digital economy.
The State Tax Service said the mechanism is aimed at improving
tax administration in the digital economy and creating more
transparent conditions for businesses while facilitating compliance
with tax obligations.
A list of registered non-resident digital service providers is
available on the official website of the State Tax Service.
