Taxes Ministry reveals preliminary list of taxable online services
By Nigar Abbasova
Azerbaijan’s Ministry of Taxes and the Banks Association of Azerbaijan developed an initial list of taxable online services.
The list reflects MCC –codes (Merchant Category Code) and comprises some 46 types of services, including purchase of e-books, films, music, games and applications, as well as landscaping, telecommunication, courier, advertising, postal and other services.
VAT will be charged should Azerbaijani citizens use the services (rendered by non-residents) at the territory of the country. Exceptions are a purchase of airline tickets and reservation of rooms in hotels by means of online services.
Purchasers will not be charged should the service is rendered at the territory of another country.
|
No |
MCC |
Description |
Visa / Mastercard |
|
|
1 |
0763 |
Agricultural Cooperatives |
Visa / Mastercard |
|
|
2 |
0780 |
Horticultural and Landscaping Services |
Visa / Mastercard |
|
|
3 |
4215 |
Courier Services—Air and Ground, Freight Forwarders |
Visa / Mastercard |
|
|
4 |
4813 |
Key-entry Telecom Merchant providing single local and long-distance phone calls using a central access number in a non-face-to-face environment using key entry |
Visa / Mastercard |
|
|
5 |
4814 |
Telecommunication Services, including Local and Long Distance Calls, Credit Card Calls, Calls Through Use of Magnetic-Stripe-Reading Telephones, and Fax Services |
Visa / Mastercard |
|
|
6 |
4816 |
Computer Network/Information Services |
Visa / Mastercard |
|
|
7 |
4821 |
Telegraph Services |
Visa / Mastercard |
|
|
8 |
4899 |
Cable, Satellite, and Other Pay Television and Radio Services |
Visa / Mastercard |
|
|
9 |
5734 |
Computer Software Stores |
Visa / Mastercard |
|
|
10 |
5960 |
Direct Marketing—Insurance Services |
Visa / Mastercard |
|
|
11 |
5962 |
Direct Marketing—Travel-Related Arrangement Services |
Visa / Mastercard |
|
|
12 |
5967 |
Direct Marketing—Inbound Telemarketing Merchants |
Visa / Mastercard |
|
|
13 |
6211 |
Securities—Brokers/Dealers |
Visa / Mastercard |
|
|
14 |
6300 |
Insurance Sales, Underwriting, and Premiums |
Visa / Mastercard |
|
|
15 |
7221 |
Photographic Studios |
Visa / Mastercard |
|
|
16 |
7273 |
Dating Services |
Visa / Mastercard |
|
|
17 |
7277 |
Debt, Marriage, Personal—Counseling Service |
Visa / Mastercard |
|
|
18 |
7278 |
Buyers/Shopping Clubs, Services |
Visa / Mastercard |
|
|
19 |
7311 |
Advertising Services |
Visa / Mastercard |
|
|
20 |
7321 |
Consumer Credit Reporting Agencies |
Visa / Mastercard |
|
|
21 |
7333 |
Commercial Art, Graphics, Photography |
Visa / Mastercard |
|
|
22 |
7339 |
Stenographic and Secretarial Support Services |
Visa / Mastercard |
|
|
23 |
7361 |
Employment Agencies, Temporary Help Services |
Visa / Mastercard |
|
|
24 |
7372 |
Computer Programming, Data Processing, and Integrated Systems Design Services |
Visa / Mastercard |
|
|
25 |
7375 |
Information Retrieval Services |
Visa / Mastercard |
|
|
26 |
7392 |
Consulting, Management, and Public Relations Services |
Visa / Mastercard |
|
|
27 |
7395 |
Photo Developing, Photofinishing Laboratories |
Visa / Mastercard |
|
|
28 |
8111 |
Attorneys, Legal Services |
Visa / Mastercard |
|
|
29 |
8398 |
Organizations, Charitable and Social Service |
Visa / Mastercard |
|
|
30 |
8675 |
Automobile Associations |
Visa / Mastercard |
|
|
31 |
8699 |
Membership Organizations (Not Elsewhere Classified) |
Visa / Mastercard |
|
|
32 |
8911 |
Architectural, Engineering, and Surveying Services |
Visa / Mastercard |
|
|
33 |
8931 |
Accounting, Auditing, and Bookkeeping Services |
Visa / Mastercard |
|
|
34 |
9402 |
Postal Services—Government Only |
Visa / Mastercard |
|
|
35 |
5815 |
Digital Goods Media – Books, Movies, Music |
Visa/MC |
|
|
36 |
5816 |
Digital Goods – Games |
Visa/MC |
|
|
37 |
5817 |
Digital Goods – Applications (Excludes Games) |
Visa/MC |
|
|
38 |
5818 |
Digital Goods – Large Digital Goods Merchant |
Visa/MC |
|
|
39 |
7800 |
Government Owned Lottery (US Region Only) |
Visa/MC |
|
|
40 |
7801 |
Internet Gambling (US Region Only) |
Visa/MC |
|
|
41 |
7802 |
Government Licensed Horse/Dog Racing (US Region Only) |
Visa/MC |
|
|
42 |
7995 |
Betting, including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks |
Visa/MC |
|
|
43 |
9406 |
Government-owned Lottery (Specific Countries) |
Visa/MC |
|
|
44 |
9754 |
Gambling—Horse Racing, Dog Racing |
Visa/MC |
|
|
45 |
6051 |
Quasi Cash—Merchant |
Visa |
|
|
46 |
6540 |
Quasi Cash—Merchant |
MC |
|
The recently approved changes to the Tax Code of the country, in particular to Articles 168.1.5, 169.1, and 169.3 regulate the imposition of tax on online services.
--
Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
Follow us on Twitter @AzerNewsAz