Spotify and TikTok register for tax purposes in Azerbaijan

Two more global digital service providers have been registered in Azerbaijan as VAT payers

Work continues in Azerbaijan on 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, two more international digital service providers have been registered for tax purposes.

The newly registered companies are Sweden's Spotify AB and Singapore's TikTok Pte. Ltd — the registration of both companies for VAT purposes took effect on October 1, 2026, 1news.az reports, citing

Let us note that when paying for services provided by registered non-resident digital service providers, VAT is not withheld from the relevant payments by banks. In this case, the companies themselves calculate the VAT, declare it, and pay it into the state budget.

Connecting international digital service providers to the electronic registration system is one of the important results of preparations for the introduction of a new tax mechanism in the sphere of the digital economy. The State Tax Service continues its work on establishing modern tax administration and a transparent business environment in the digital economy, as well as on introducing convenient mechanisms for fulfilling tax obligations.

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