Azerbaijan Tax Ministry Clarifies VAT Rules on International E-Commerce Transactions

The Azerbaijani Ministry of Taxes April 16 clarified VAT rules on international e-commerce transactions. The agency clarified that: 1) banks are obligated to calculate and withhold VAT from taxes paid online by individuals not registered with the tax authority; 2) an 18 percent VAT is withheld by banks on all types of credit card payments for international e-commerce transactions; 3) VAT isn’t charged on fines paid to government agencies; and 4) specified transactions by organizations operating within the country aren’t subject to VAT. [Azerbaijan, Ministry of Taxes, 04/16/21]

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