VAT is the abbreviation of Value Added Tax. VAT is generally due when goods and/or services are sold. It applies to most goods and services that are bought and sold for use or consumption in Azerbaijan. It is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Where digital services are provided by a supplier that is non-resident in Azerbaijan (as is the case for Zoom), the responsibility to collect and remit VAT depends on whether the customer is purchasing Zoom services in relation to its business activities in Azerbaijan or in an individual capacity.
If the customer is purchasing Zoom services for private or personal use (for example, not in relation to its business activities in Azerbaijan), VAT will be collected on the supplies made to the customer by Zoom. If the customer purchases Zoom services in relation to its business activities in Azerbaijan and provides Zoom with a valid VÖEN (Vergi Ödəyicisinin Eyniləşdirmə Nömrəsi - Taxpayer Identification Number), Zoom will not charge VAT on its invoices. Instead, VAT should be self-assessed, under the reverse-charge mechanism, by the customer.
Zoom is required to collect and remit Azerbaijani VAT on services to customers not conducting business activities in Azerbaijan. Zoom determines this based on whether a valid VÖEN has been provided.
A VÖEN (Vergi Ödəyicisinin Eyniləşdirmə Nömrəsi) is a unique 10-digit Taxpayer Identification Number issued by the State Tax Service of Azerbaijan. It identifies both legal entities and individuals for tax purposes.
Note: If you have previously indicated that you are purchasing Zoom services for your private or personal use, you will need to select Business Account to add your VÖEN.
If a customer's Sold To location is in Azerbaijan, and the customer has not provided a valid VÖEN, Zoom will charge VAT on its invoices.
This information is subject to cross-referencing against other data to verify that the Sold To country is accurate.
It is your responsibility as a customer to ensure that your Sold To address is accurate.
No. VAT applies to all sales of Zoom's services in Azerbaijan where the customer does not make the purchase in relation to their business activities in Azerbaijan and provide a valid VÖEN.
No. VAT will be charged on all supplies to charities and other organizations unless the customer provides a valid VÖEN.
Customers with a valid VÖEN will not be charged VAT but may need to self-assess under the reverse-charge mechanism. There are currently no other exemptions available.
Customers with a valid VÖEN will not be charged VAT but may need to self-assess VAT under the reverse-charge mechanism as an import of services. Customers must notify Zoom of any change in business and/or VÖEN status.
Zoom performs periodic validation checks of customer VÖENs to ensure that the VÖEN remains valid. If, during these periodic validations, it is identified that your VÖEN is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid VÖEN is provided.
The VÖEN can be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no VÖEN is entered at the time the next invoice is issued, VAT will be charged until a valid VÖEN is entered. No retrospective adjustments can be made if a valid VÖEN is entered and VAT has previously been charged on the invoices issued to you.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Zoom cannot provide tax advice for your individual situation, and therefore strongly recommends speaking with a professional tax advisor for tailored advice.