The supply of services by non-residents carrying on economic activities from or through a fixed place in Azerbaijan is subject to VAT in Azerbaijan. The supply of services by a non-resident without a permanent establishment to any VAT-registered payer (B2B) in Azerbaijan is subject to a reverse charge in the hands of the recipient. Non-residents not carrying on economic activities from a fixed place in Azerbaijan are required to appoint a VAT agent to comply with their VAT obligations.

Supply of Digital Services

Supply of e-commerce services and works by a non-resident who is not registered as a VAT payer is subject to reverse charge in the hands of the recipient in Azerbaijan. In case the e-commerce services are purchased via bank cards, the bank coordinating the transaction (via the bank card purchase) is required to pay VAT on a reverse charge basis from the funds of the customer.

E-commerce is defined as the provision of works/services and goods by means of a global information network (including e-books, music, audio-video, images and graphics, games, software solutions, online advertisements and similar).