President of Azerbaijan Ilham Aliyev has approved a law amending the Tax Code, as well as the laws "On Banks" and "On the Customs Tariff," adopted by the Milli Majlis on February 13.
According to Report, under the updated provisions, non-residents conducting e-commerce over the internet and earning income from providing goods and services to persons not registered with Azerbaijani tax authorities will be required to register for tax purposes electronically within 30 days after their annual turnover from providing services to customers in Azerbaijan exceeds the manat equivalent of $10,000.
For non-residents whose turnover is below this threshold, tax registration will be voluntary.
Consulting, legal, financial, accounting, design, and engineering services provided via email or other interactive communication tools, real-time online education, and online ticket booking for scientific, educational, cultural, sports, and entertainment events will not be considered e-commerce services for the purposes of this article.
The procedure for electronic tax registration, re-registration, and deregistration of non-residents (except permanent establishments under Article 19 of the Tax Code), as well as VAT registration, filing of declarations, and tax payment, will be determined by the relevant executive authority.
These amendments will come into force six months after the law is published.