Background
As we have previously explained in detail, Azerbaijan adopted a new regime for non-resident digital service providers that will become effective on September 1, 2026.
The amendments to the Tax Code adopted on February 13, 2026, update the rules and requirements for non-resident digital service providers relating to B2C transactions. According to the new rules, non-resident digital service providers should register for VAT when they surpass the annual threshold of USD 10,000 relating to B2C supplies.
Non-resident digital service providers have before them a specifically defined threshold of USD 10,000 based on the 12-month income. The threshold is based only on B2C transactions.
Ahead of the effective date of the new regime specifically designated for non-resident digital service providers, Meta has informed that on September 1, 2026, it will start applying 18% VAT on its Azerbaijan-located advertising sales.
Meta Registers for VAT in Azerbaijan
Starting on September 1, 2026, Meta will start collecting 18% VAT on Facebook advertising for any person whose “sold to” country is set to Azerbaijan.
Meta, in its official statement, shared that locally registered businesses could update their account with a local TIN, and in that manner, Meta will not add 18% on the net amount charged for the Facebook ads used by locally registered persons.
In the cases where a validated TIN is provided, the VAT isn’t going to be charged by the platform, and locally registered businesses shall be accountable for VAT under a self-assessing arrangement.
What’s Next
Non-resident digital service providers should register for Azerbaijan VAT starting on September 1, 2026, and should start collecting VAT from the registration effective date.
If you have any questions concerning the Azerbaijan VAT regime for non-resident digital service providers, reach out to us; we are more than happy to assist you in establishing VAT compliance in the country
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