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

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Asia Pacific VAT on digital services