BAKU, Azerbaijan, January 28. Azerbaijan is set to implement a new mechanism for registering non-resident individuals engaged in e-commerce for value-added tax (VAT) purposes, Trend reports.
The measure was discussed during the Economic Policy, Industry, and Entrepreneurship Committee meeting of the Azerbaijani Parliament and is reflected in a draft amendment to the Tax Code.
Under the draft law, non-residents conducting e-commerce through internet information resources, who are not registered with tax authorities, must register electronically for tax purposes within thirty days if their turnover from services or sales to buyers in Azerbaijan exceeds $10,000 in a calendar year. Registration for non-residents with a turnover below this threshold will be voluntary.
Certain services are excluded from this mechanism, including consulting, legal, financial, accounting, design, and engineering services provided via email or other interactive communication tools, real-time online training and educational services, as well as ticket sales for scientific, educational, cultural, sports, and entertainment events.
The draft law also outlines that the procedure for registering, re-registering, or deregistering non-residents for VAT, submitting VAT declarations, and making VAT payments will be determined by the relevant executive authority.
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