According to the State Tax Service’s operational data released on 7 October 2026, tax revenues from the non-oil-gas sector grew by 12.6% year-on-year for the first nine months of 2026, reaching AZN 4.2 billion. The growth was driven by strengthened VAT compliance, expanded digital economy taxation, and improved taxpayer services. The Ministry of Economy highlighted that the result reflects the successful implementation of the “Tax Administration Reform Program 2024-2027” and the gradual diversification of the economy away from hydrocarbon dependence.
Key Takeaways
- VAT and Digital Services Lead Growth: VAT collections rose 14.3%, buoyed by the mandatory VAT registration of foreign digital service providers (effective 1 July 2025) and the new e-invoicing mandate for B2B transactions (effective 1 January 2026).
- SME Formalization: The simplified tax regime for micro and small enterprises attracted 22,000 new registrants in 2026, contributing AZN 310 million in additional revenue.
- Transfer Pricing Enforcement: Enhanced transfer pricing audits under the updated 2025 guidelines yielded AZN 180 million in adjustments, with a focus on multinational groups in the telecommunications, pharmaceuticals, and construction sectors.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement