Spotify and TikTok have registered for value-added tax in Azerbaijan, meaning the foreign digital platforms will now calculate, declare and pay VAT on their services directly to the state budget.
Sweden-based Spotify AB and Singapore-based TikTok Pte. Ltd. registered through the electronic portal of Azerbaijan’s State Tax Service, according to Vesti Baku. The registrations took effect on Oct. 1, 2026.
What Changes for Payments
Banks will no longer be required to withhold VAT from payments for services supplied by registered foreign digital providers. The responsibility for calculating the tax, filing returns and transferring the money to the state budget will instead rest with the companies.
The State Tax Service describes the registration of international platforms in its electronic system as part of preparations for a new approach to taxing the digital economy. The agency also maintains a public list of registered nonresident service providers.
Source: Vesti Baku.