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Azerbaijan VAT digital services Jan 2026

1 January 2026 VAT non-resident providers of e-services replaces Withholding Tax

From 1 January 2026, non-resident providers of digital services to Azerbaijani consumers will be mandated to register with the tax administration and levy 18% VAT.  Currently, there is a voluntary VAT regime – where no registration is undertaken, a Withholding Tax applies.

The Azerbaijan Ministry of Economy State Tax Service will issue full legislative amendments and guidance in the forthcoming months.

New VAT registration portal

In June 2024, the tax authorities launched a VAT registration portal wishing to provide a VAT inclusive services.

In November 2022, the parliament accepted a Bill to impose VAT registration requirements on non-residents. This has not yet progressed . The government in December 2023 issued technical implementation regulations. This includes no VAT registration threshold.

The current VAT rate in Azerbaijan is 18%, and must be split from the payment via payment providers. This includes credit card merchants, banks, payment e-wallets and others. This excludes payments for hotels and aeroplane bookings.

What e-services are liable to VAT in Azerbaijan?

Income from the following services is liable to VAT at 18%

  • Telecoms data and voice
  • TV and radio broadcasting
  • Gaming and games of chance
  • e-books
  • E-learning
  • Apps
  • SaaS or cloud-based software
  • Streaming or download software
  • Online storage
  • Advertising

Compiling VAT or GST return can be complex. VAT Calc’s single platform VAT Filer can correctly complete any country filings with verified VAT or GST transactional data from our VAT Calculator or VAT Auditor integrated tools.

Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Cook Island 15% 2019 NZ$ 40,000
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kiribati 12.5% 2017 AU$ 100,000
Kyrgyzstan 12% Jan 2022 Nil
Laos 10% Feb 2022 LAK 400m
Malaysia 8% Jan 2020 RM500,000
Nepal 13% Jul 2022 Rupees 2m Also 2% DST
New Caledonia 11% 2020 XPF 7.5 million
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Palau 10% Jan 2023 $300,000
Philippines 12% 1 Jun 2025 P 3million
Singapore 9% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Sri Lanka 18% Oct 2025 LKR 60m
Taiwan 5% May 2017 NTD 600,000
Tajikistan 14% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 12% Jan 2020 Nil
Vietnam 10% Dec 2020

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