BAKU, Azerbaijan, August 16. In Azerbaijan, non-resident companies providing goods, works, and services to customers through e-commerce will be required to register for tax electronically within 30 days if their turnover during a calendar year exceeds the manat equivalent of $10,000.
The relevant law, adopted on February 13 and introducing these amendments, will enter into force on August 23.
Under the law, non-residents conducting e-commerce through internet information resources and earning income from providing goods, works, and services to persons not registered with the tax authorities (excluding permanent establishments in Azerbaijan of foreign legal entities or foreign individuals as defined by the Tax Code) must register electronically with the tax authorities within 30 days after their annual turnover from supplying goods, works, and services to customers in Azerbaijan exceeds the manat equivalent of $10,000.
For non-residents whose turnover remains below this threshold, electronic tax registration will be voluntary.
For the purposes of this provision, the following will not be considered services supplied through e-commerce: consulting, legal, financial, accounting, design, and engineering services provided via email or other interactive communication channels; educational and training services delivered online in real time; and online ticket booking services for scientific, educational, cultural, sports, and entertainment events.
The procedure for electronic tax registration, re-registration, deregistration, VAT registration, submission of VAT returns, and payment of VAT for such non-resident e-commerce operators (excluding permanent establishments in Azerbaijan of foreign legal entities or foreign individuals under the Tax Code) will be determined by the body designated by the relevant executive authority.
Taxpayers registered under the above provisions will be required to pay VAT to the state budget for each reporting period no later than the last day of the month following the reporting period.
Under the legislation in force until August 23, the procedures for electronic tax registration, re-registration, deregistration, VAT registration, submission of VAT returns, and payment of VAT for non-residents providing goods, works, and services to residents through e-commerce are determined by the body authorized by the relevant executive authority.
