Link: https://www.taxes.gov.az/az/page/ar-vergi-mecellesi; 

Article 33.(Tax Code) Taxpayer registration

33.8-1. Non-residents conducting electronic commerce through an internet information resource, which involves the provision of works and services to residents, shall be registered for tax purposes electronically, re-registered, and deregistered, registered as VAT payers, submit VAT returns, and pay VAT according to the procedure determined by the relevant executive authority or the body (organization) designated by it (excluding permanent representations as defined in Article 19 of this Code).

Article 154. VAT taxpayers

154.7. The persons specified in Article 33.8-1 of this Code (excluding permanent representations as defined in Article 19 of this Code) are considered VAT payers.

Article 169. Taxation of non-residents

169.1. If a non-resident not registered for VAT purposes in Azerbaijan provides services or performs work for the tax agent mentioned in Articles 169.2 or 169.5 of this Code (except for services related to hotel bookings and airline tickets outside the borders of Azerbaijan within the framework of electronic commerce), such services or work shall be subject to taxation in accordance with this chapter.

169.3. In cases covered by Article 169.1 of this Code, the time of the taxable transaction is considered to be the time when payment is made. If payment is made before the transaction is completed, the taxable transaction is deemed to have occurred when payment is made. The amount of tax is determined by applying the VAT rate to the amount payable to the non-resident (excluding VAT) in accordance with the provisions of Article 173.1 of this Code.

If the non-resident is not registered for VAT purposes, VAT must be calculated and paid on the amount payable to the non-resident by persons not registered with the tax authorities when payments are made for the provision of works and services in electronic commerce.

When the buyer of works and services in electronic commerce or the participant in electronic lotteries (including virtual lotteries), sports betting, and other competitions organized electronically outside the borders of the Republic of Azerbaijan is a person not registered with the tax authorities, the VAT calculated by the local or foreign payment service provider’s branch in Azerbaijan is paid into the budget from the buyer's funds.

Article 173. VAT rate

173.1. The VAT rate for each taxable transaction and each taxable import is 18%.

As no special exemptions or reductions are provided for non-residents engaged in electronic commerce under the Tax Code, they are subject to taxation under the general rules.