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.
