BAKU, Azerbaijan, February 23. Azerbaijan is set to improve the tax registration process for non-resident individuals involved in electronic commerce, specifically for value-added tax (VAT) compliance, Trend reports.
The amendments are reflected in changes to the Tax Code of the Republic of Azerbaijan, as well as the laws “On Banks” and “On Customs Tariff,” approved by President Ilham Aliyev.
Under the amendments, non-resident entities conducting e-commerce through internet information resources and earning income from the provision of works and services to persons not registered with tax authorities in Azerbaijan must register electronically for tax purposes within 30 days once their annual turnover from services supplied to customers in Azerbaijan exceeds the manat equivalent of $10,000. Electronic registration will remain voluntary for non-residents whose turnover does not exceed this threshold. Permanent establishments in Azerbaijan of non-resident legal or natural persons, as defined by the Tax Code, are excluded from this requirement.
This provision specifies that services such as consultancy, legal, financial, accounting, design, and engineering, when provided through email or other interactive communication tools, along with real-time online education and training, as well as online ticket ordering for scientific, educational, cultural, sports, and entertainment events, will not fall under the category of electronic commerce services for the purposes of this article.
The procedure for electronic tax registration, re-registration, deregistration, VAT registration, submission of VAT returns, and payment of VAT by non-resident e-commerce operators will be determined by the authority designated by the relevant executive body.
Taxpayers will be required to pay VAT related to such registered non-resident entities to the state budget for each reporting period no later than the last day of the month following the reporting period.
The head of state has signed a decree to ensure the implementation of the relevant law.
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