Azerbaijan has amended its e-commerce tax rules for non-residents, introducing a USD 10,000 annual registration threshold, narrowing the rules to supplies to unregistered persons, and excluding certain professional, training, and event-ticketing services from the e-commerce regime.
The Azerbaijan Cabinet has issued Resolution No. 295 of 14 September 2026, amending Resolution No. 387 of 30 October 2023.
These updates refine the legal framework governing electronic tax registration, VAT registration, reporting, and payment procedures for non-resident entities delivering e-commerce goods and services in Azerbaijan. The amendments also detail the administrative procedures, necessary documentation, and conditions under which foreign digital service providers must fulfil their tax obligations.
The key structural changes introduced by Resolution No. 295 are summarised below:
Shift in recipient scope (B2C focus vs. B2B reverse charge)
Resolution No. 295 narrows the scope of the rules under Resolution No. 387 by replacing references to “residents” with “persons not registered with the tax authorities.” This change clarifies that the mandatory electronic tax registration, VAT registration, and direct VAT payment requirements for non-resident e-commerce businesses apply primarily to B2C transactions with unregistered end consumers.
Supplies made to tax-registered businesses or individuals are excluded from the direct non-resident filing and payment mechanism. Instead, VAT on these B2B transactions continues to be accounted for under the standard reverse-charge mechanism, with local tax agents responsible for the tax under Article 169 of the Tax Code.
Statutory registration threshold
Resolution No. 295 introduces an explicit USD 10,000 annual turnover threshold for electronic tax registration by non-residents providing electronic works and services to unregistered persons in Azerbaijan.
Non-residents must complete electronic tax registration within 30 days after their calendar-year turnover exceeds the threshold. Those whose annual turnover remains below USD 10,000 may register electronically voluntarily.
Exclusions from e-commerce tax rules
Resolution No. 295 adds Clause 1.4-1, clarifying that certain digital and online activities are excluded from the definition of e-commerce for tax registration and payment purposes.
The exclusions cover consulting, legal, financial, accounting, design, and engineering services provided by email or other interactive communication channels; teaching and training services delivered in real time via the Internet; and online reservations or bookings for tickets to scientific, educational, cultural, sports, and entertainment events.
Accordingly, these activities are excluded from the specific registration and VAT payment requirements applicable to non-resident e-commerce businesses.
The amendments generally take effect from 14 September 2026.
