BAKU, Azerbaijan, February 13. The Azerbaijani Parliament has approved a new law aimed at modernizing the value-added tax (VAT) registration system for non-resident individuals engaged in e-commerce, Trend reports.
The legislation, discussed during a plenary session of the Azerbaijani parliament, introduces clearer rules for non-residents providing goods or services through internet platforms in Azerbaijan. Non-residents earning income from sales to buyers in Azerbaijan exceeding $10,000 in a calendar year must now register for VAT electronically within 30 days, while registration remains voluntary for those below this threshold.
Certain services, including consulting, legal, financial, accounting, design, and engineering services provided via email or interactive communication; real-time online education and training; as well as ticket sales for science, education, culture, sports, and entertainment events, are exempt from the electronic VAT registration requirement.
The law also establishes the procedures for registering, re-registering, and deregistering non-resident e-commerce providers, as well as their obligations for VAT reporting and payment, which will be overseen by the relevant executive authority.
Non-resident taxpayers who register will be required to remit VAT to the state budget by the last day of the month following each reporting period.
Following discussions, the legislation was passed in its third reading.
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