Relevant Results
Sorry, there are no results matching your search.
Autocomplete suggestions are available. Use up and down arrows to review and enter to select.
See more results

Azerbaijan: Registration portal for VAT on cross-border provision of digital services

Registration is currently optional for taxpayers.

MONTH DD, YYYY [REQUIRED DATE]

Azerbaijan on June 1, 2024, launched a registration portal for complying with its value added tax (VAT) regime on cross-border provision of digital services.

As Azerbaijan requires local financial institutions to withhold VAT on purchases of digital services made by consumers in Azerbaijan, the registration is currently optional for taxpayers. The tax authorities have also clarified the following points:

  • Scope: The regime applies to “the provision of services, and the performance of work using information systems.” This includes uploading electronic books, music, audio-video materials, graphic images, virtual games, software, placing advertisements, and other similar activities through the internet.
  • Registration threshold: There is no registration threshold.
  • Customer location: The customer location may be determined by IP address, or country code of the customer’s mobile number.
  • B2B vs. B2C: The regime only applies to made to consumers (i.e., B2C sales), and sales made to business customers (i.e., B2B sales) are subject to the VAT self-assessment mechanism.
  • E-invoice: There is no electronic invoicing (e-invoicing) obligation for nonresident providers of digital services. 

KPMG observation

These clarifications are explicitly mentioned in draft amendments to the regime that will be discussed in the fall session of the country’s parliament. The tax authorities are not expected to issue any further general instructions. Instead, they would prefer to engage directly with taxpayers who opt for any “post-registration” instructions. They are exploring ways and methods to encourage voluntary registration by studying the practices of other countries through bilateral discussions and international organizations.

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Chinedu Nwachukwu | chinedunwachukwu@kpmg.com

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.

KPMG. Make the Difference.


Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates or related entities.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. KPMG LLP does not provide legal services.

The information contained herein is not intended to be “written advice concerning one or more Federal tax matters” subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

© 2025 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP\'s . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Search now!

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Submit

Office locations

View locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Learn more

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Contact

Headline