Aze.US
Online purchases in Azerbaijan could soon become more expensive as lawmakers consider applying value-added tax (VAT) to goods ordered remotely through foreign digital platforms.
Under the proposal discussed in parliament, non-resident online marketplaces with annual turnover exceeding $10,000 would be required to register for tax purposes within 30 days and begin paying VAT in Azerbaijan. If adopted, the measure would formalize the presence of major platforms in the domestic tax system and could affect final consumer prices.
Logistics sector representatives say some price increases are already visible in certain online orders, though they emphasize that delivery tariffs themselves are not rising. Instead, any additional cost would likely stem from new tax obligations incorporated into product pricing.
Economists argue the reform is aimed at expanding budget revenues and ensuring fair competition. Local businesses already pay taxes and duties, while many foreign platforms have historically operated outside the country’s tax framework despite generating substantial sales volumes.
Analysts expect the financial impact to be felt most strongly by frequent online shoppers. In the short term, higher prices for imported goods are widely seen as unavoidable, even as authorities frame the move as necessary regulation of a rapidly growing e-commerce sector.
Earlier increases in foreign customs charges had already pushed online shopping costs upward at the start of the year. The proposed VAT rules could reinforce that trend.