OpenAI and two other international companies register for tax purposes in Azerbaijan

The registration of global digital service providers as VAT payers continues in Azerbaijan

Azerbaijan is continuing to implement measures for taxing the digital economy and improving tax administration in this area. Through the electronic registration portal of the State Tax Service under the Ministry of Economy, three more international digital service providers have completed their registration for tax purposes.

The newly registered companies are the Dutch Zoho Corporation B.V. and the American Zoom Communications, Inc. and OpenAI OpCo, LLC — their registration as VAT payers will take effect on September 1, 2026, 1news.az reports, citing the State Tax Service.

According to the amendments made this year to the Tax Code, starting in September 2026, electronic registration with the tax authority will become mandatory for nonresident digital service providers that supply services in electronic form and have an annual turnover in Azerbaijan exceeding 10,000 dollars (17,000 manats).

Registered nonresident digital service providers independently fulfill their VAT obligations: they calculate the tax, submit a declaration, and pay it into the state budget. In this case, VAT is not withheld by banks when payments are made to these providers. The new mechanism is aimed at improving tax administration in the field of digital services, simplifying the fulfillment of tax obligations, and increasing transparency.

The State Tax Service is continuing its information and communication work with nonresident digital service providers that supply services in electronic form in Azerbaijan, as well as the process of their registration.

The list of registered nonresident digital service providers can be viewed on the official website of the State Tax Service by following this link.

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