OpenAI, Zoom, and Zoho Register for VAT in Azerbaijan

International tech giants OpenAI OpCo, LLC, Zoom Communications, Inc. (US), and Zoho Corporation B.V. (Netherlands) have officially registered as Value Added Tax (VAT) payers in Azerbaijan, the State Tax Service under the Ministry of Economy reported.

Their status as registered VAT payers will take effect on September 1, 2026, following the completion of their electronic tax registration.

Under amendments to the Tax Code, foreign digital service providers that supply electronic services to Azerbaijani customers with an annual turnover exceeding $10,000 are required to register electronically with local tax authorities starting in September. Registered companies will calculate, file, and remit VAT directly to the state budget, exempting local banks from withholding VAT on customer transactions made to these providers.

The State Tax Service noted that the new mechanism aims to modernize tax administration for cross-border digital services, enhance fiscal transparency, and streamline compliance, adding that registration for other foreign digital vendors remains underway.