From 23 August 2026, non‑resident providers of digital services to Azerbaijani consumers must register with the tax administration and charge 18% VAT, replacing the previous withholding‑tax regime. The VAT registration threshold is AZN 17,000 per annum, and the current VAT rate of 18% applies to all domestically supplied digital services. Implementation guidance and FAQs are expected before the August deadline.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
VatCalc · 3 months ago
Azerbaijan’s Parliament has approved a new VAT regime for non‑resident digital service providers, requiring local registration, charging, collecting and remitting VAT from 1 January 2026. The change replaces the previous withholding‑tax or optional‑registration system, introduces a USD 10 000 annual sales threshold and ends the B2B reverse charge that had been in place since 2023. The current VAT rate on digital services remains 18%.
Global VAT Compliance · 5 months ago
Azerbaijan has announced a mandatory VAT regime for digital services supplied by non‑resident providers, requiring them to register, charge VAT and file returns. The scope covers software, SaaS, cloud, streaming, digital content, online advertising, digital marketing, platform access and other automated services. Detailed thresholds, filing frequency and administrative requirements are still pending clarification.
Economic Times · 2 days ago
The Supreme Court has upheld a 28% GST on online gaming, applying it retrospectively to curb unregulated wagering. The ruling targets real‑money games and aims to aid investigations into money laundering. The decision marks a significant shift in India's approach to digital gambling.
Seoul Economic Daily · 7 days ago
The Supreme Court of Korea ruled that fresh flower decorations supplied at hotel wedding venues are a provision of services, not a supply of goods, and therefore subject to VAT. The ruling overturned a lower court decision that had treated the decorations as exempt unprocessed agricultural products. As a result, the tax office assessed significant VAT amounts for Josun Hotel & Resort for 2018.
VatCalc · 8 days ago
Kazakhstan has launched a pre‑filled VAT return system that automatically populates Form 300.00 using data from its Electronic Invoice Information System, taxpayer accounts and customs declarations. The system updates VAT return data on a T+1 basis, requiring VAT credit notifications to have a ‘confirmed’ status. Businesses must ensure accurate and timely submission of invoices and credit adjustments to avoid errors in the pre‑filled returns.
VatCalc · 9 days ago
China has expanded its instant VAT refund scheme for foreign tourists, allowing refunds at the point of sale and simplifying customs checks. From 1 July 2026, customs will conduct random inspections for claims below CNY 10,000, while tourists must validate claims within 28 days of purchase. The reforms aim to boost inbound tourism and consumer spending.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
The requirement takes effect from 23 August 2026.
An 18% VAT rate will apply to those services.
The threshold is AZN 17,000 per annum.
Services such as telecoms, data and voice, TV and radio broadcasting, gaming, e‑books, e‑learning, apps, SaaS, streaming, online storage, and advertising are subject to VAT.
Primary source
Read the full article at VatCalcThis summary was published on VATfaqs.com on 6 March 2026. It relates to VAT developments in Azerbaijan. The original source is VatCalc.
