Azerbaijan introduces mandatory tax registration for foreign e-commerce platforms exceeding USD 10,000 turnover, grants exemptions for cultural imports and World Urban Forum suppliers, and strengthens state powers over strategic investments under sweeping reforms enacted in February 2026.
Azerbaijan enacted Law No. 355-VIIQD on 23 February 2026, mandating tax registration for non-resident e-commerce operators.
Businesses without permanent establishments must register electronically if their annual turnover exceeds USD 10,000 in manat equivalent, with voluntary registration available below this threshold. Registration must be completed within 30 days of crossing the threshold.
The law targets platforms serving Azerbaijani customers, though “conducting e-commerce in Azerbaijan” lacks a precise definition. It generally applies to businesses offering local delivery or specifically targeting the domestic market.
Registered non-residents must pay VAT to Azerbaijan’s state budget by the last day of the month following each reporting period, effectively transferring the reverse-charge burden from local customers. However, consulting, legal, financial, accounting, design, engineering services, real-time online education, and event ticket sales remain exempt from these obligations.
Targeted tax exemptions
Suppliers supporting the 13th World Urban Forum (WUF13) receive comprehensive one-year tax relief starting 1 September 2025, covering personal income tax, corporate tax, VAT, and intellectual property royalties.
A new rare vehicle import programme allows individuals to bring in one qualifying motor vehicle annually, exempt from VAT and excise tax, with a nationwide cap of ten vehicles yearly. Imports of artworks, antiques, and collectables also enjoy VAT exemption.
The e-commerce registration requirement takes effect on 23 August 2026. Rare vehicle and WUF13 exemptions apply from 23 March 2026, whilst art and collectables provisions began 1 January 2026.
International standards adoption
Azerbaijan’s government also issued Cabinet Resolution No. 38, adopted 5 February 2026, which establishes procedures for applying international, regional, and foreign standards in Azerbaijan. The Azerbaijan Standardisation Institute manages adoption through authentic translation, technical modification, or direct implementation with translated titles.
The Institute reviews submissions within 15 business days, notifying applicants of deficiencies within five days. Corrections must be made within ten business days, after which complete submissions reach technical committees within three days for a 30-day evaluation. Approved standards must align with national legal acts before publication.
Strategic investment protections
Azerbaijan’s government also introduced amendments to the Investment Activity Law (No. 551-VIQ of 22 June 2022) on 13 February 2026, permitting non-discriminatory state acquisition of investments when public necessity demands or exceptional circumstances threaten national interests.
Compensation follows investment agreement terms, with statutory standards as fallback provisions. The changes separate these procedures from land acquisition laws and clarify that strategic investment nationalisation must comply with Azerbaijani law.
