AZE.US
OpenAI, the U.S. company behind ChatGPT, has officially registered with Azerbaijan’s tax authorities.
The State Tax Service has also registered U.S.-based Zoom Communications and Netherlands-based Zoho Corporation, AZE.US reports.
The companies’ registrations for value-added tax purposes will take effect on Sept. 1, 2026.
Under amendments to Azerbaijan’s Tax Code, nonresident companies providing digital services in the country must register electronically if their annual Azerbaijani revenue exceeds $10,000.
Once registered, foreign digital service providers must calculate, declare and pay VAT directly to Azerbaijan’s state budget.
Banks will no longer separately withhold VAT when customers make payments to companies operating under the new system.
The change is intended to improve transparency and simplify the taxation of international digital services sold to consumers in Azerbaijan.
For ChatGPT users, the central question is whether OpenAI’s registration will lead to higher subscription prices.
The State Tax Service announcement did not say that OpenAI would change its subscription rates. It would therefore be premature to claim that ChatGPT will automatically become more expensive in Azerbaijan on Sept. 1.
The final amount charged to customers will depend on how OpenAI handles its VAT obligations. The company could absorb the tax within its existing prices or reflect it separately on customer invoices.
For now, only OpenAI’s VAT registration has been confirmed. No change to ChatGPT subscription prices in Azerbaijan has been announced.
AZE.US