Number of foreign e-commerce participants registered for tax in Azerbaijan rises to 23 from 7

The number of non-resident e-commerce participants registered for tax purposes in Azerbaijan has risen to 23 from seven, with new registration rules taking effect in September 2026, Chingiz Musayev, head of the digital economy taxation department at the State Tax Service’s main directorate for international taxation and tax monitoring, said.

The development of the digital economy and the widespread use of artificial intelligence and electronic payment systems require new approaches to tax regulation, he said.

Musayev noted that proposed amendments to the law on electronic commerce do not directly cover card-to-card transfers, but are significant in extending e-commerce rules to non-residents.

“This law gives us grounds to obtain all information concerning them from other non-residents,” he said.

Amendments to the Tax Code have expanded the mechanism for registering non-resident e-commerce participants for tax purposes, Musayev said. Previously, such participants were registered for value-added tax (VAT) purposes, while the new rules came into force in September 2026.

He added that the changes could allow the activities of e-commerce participants to be covered globally, including both goods and services.

Gulnar Nazimqizi