As part of reforms aimed at improving tax regulation in Azerbaijan's digital economy, the State Tax Service (STS) under the Ministry of Economy continues to register foreign digital service providers through its electronic registration system.
According to the agency, four more international companies were registered electronically via the STS portal this year: American companies Xsolla (USA), Inc. and Valve Corporation, British Formula One Digital Media Limited, and German Cleverbridge GmbH. The VAT registration of Valve Corporation and Cleverbridge GmbH will take effect on September 1, 2026. The registration of the other companies has already taken effect.
"According to amendments to the Tax Code made this year, starting in September, electronic registration with the tax authority will become mandatory for non-resident digital service providers offering services in Azerbaijan through e-commerce, whose annual turnover in the country exceeds $10,000. The purpose of the amendments is to simplify tax compliance for international digital platforms, create equal competitive conditions, and increase transparency in the digital economy. When purchasing digital services from non-resident providers registered with the tax authority, banks will not withhold VAT from buyers' accounts. Registered companies calculate, declare, and pay VAT to the state budget independently," the statement said.