Azerbaijani parliament adopts new rules for tax registration of non-residents in e-commerce

The Milli Majlis (Parliament of Azerbaijan) has adopted in the third reading the criteria for tax registration of non-residents engaged in electronic commerce in Azerbaijan.

According to Report, the relevant amendments to the Tax Code, as well as to the laws "On Banks" and "On Customs Tariff," were approved at today"s plenary session of the spring session.

Under the draft law, non-residents conducting electronic trade via online resources and earning income from providing works and services to customers in Azerbaijan are required to register for tax purposes electronically within 30 days after their annual turnover exceeds the equivalent of $10,000 in manats. If turnover is below this threshold, registration will be voluntary.

At the same time, consulting, legal, financial, accounting, design and engineering services provided via email and other interactive communication tools, real-time online educational services, as well as online ticket booking for scientific, educational, cultural, sports and entertainment events will not be classified as services rendered within the framework of electronic commerce for the purposes of this article.

The procedure for electronic tax registration, re-registration and deregistration of non-residents (except for permanent establishments provided for in Article 19 of the Tax Code), as well as VAT registration, filing of VAT returns and payment of VAT, will be determined by the relevant executive authority.