BAKU, Azerbaijan, August 24. Measures to tax the digital economy and improve tax administration in the sector are continuing in Azerbaijan. Four more international digital service providers have been registered for tax purposes through the electronic registration portal of the State Tax Service under the Ministry of Economy.
The State Tax Service said this in a statement.
The registered companies are U.S.-based Anthropic, PBC and Aghanim Inc., Switzerland-based eBay Marketplaces GmbH, and Netherlands-based Netflix International B.V. Their VAT registration will take effect on Sept. 1, 2026.
Under amendments to Azerbaijan's Tax Code adopted this year, starting in September 2026, nonresident digital service providers that provide services through e-commerce and generate annual turnover in Azerbaijan exceeding $10,000 will be required to register electronically with the tax authorities.
VAT is not withheld by banks on payments made to registered nonresident digital service providers. The companies themselves calculate, declare and pay the VAT to the state budget.
The integration of international digital service providers into the electronic registration system is one of the key outcomes of preparations for implementing the new tax mechanism. The State Tax Service continues efforts to establish modern tax administration and a transparent business environment in the digital economy.
