BAKU, Azerbaijan, August 13. As part of reforms aimed at improving tax regulations in Azerbaijan’s digital economy, the State Tax Service under the Ministry of Economy continues registering foreign digital service providers for tax purposes through an electronic registration system it established.
According to the Service, four more international companies have registered electronically through the State Tax Service’s portal this year.
They are U.S.-based Xsolla (USA), Inc. and Valve Corporation, the U.K.’s Formula One Digital Media Limited and Germany’s Cleverbridge GmbH. The VAT registrations of Valve Corporation and Cleverbridge GmbH will take effect on Sept. 1, 2026. The registrations of the other companies have already taken effect.
Under amendments to the Tax Code made this year, starting in September, electronic tax registration with the tax authority will become mandatory for nonresident digital service providers that provide services in Azerbaijan through e-commerce and whose annual turnover in the country exceeds $10,000.
The amendments are aimed at simplifying compliance with tax obligations for international digital platforms, creating a level playing field and increasing transparency in the digital economy.
“When digital services are purchased from nonresident digital service providers registered with the tax authority, banks do not withhold VAT from the buyers’ accounts. Registered companies calculate, declare and pay the VAT themselves to the state budget,” the agency said.
