The Tax Code of the Republic of Azerbaijan

Article 169. Taxation of non-residents
169.1. If a non-resident who has not registered for VAT purposes in the Republic of Azerbaijan performs work or provides a service in the territory of the Republic of Azerbaijan for a tax agent stipulated in Articles 169.2 or 169.5 of this Code, the performance of work or provision of services for the purposes of this Chapter shall be taxed in accordance with this Article.
169.2. For the purposes of this Article, any person registered for VAT purposes or any resident legal person shall be considered a tax agent.
169.3. Where Article 169.1. of this Code is applied, the tax agent shall charge and pay VAT from the amount to be paid to non-resident. The amount of tax shall be determined by applying the tax rate provided for in Article 173.1. of this Code to the amount payable to non-resident (without VAT).
169.4. If the tax agent has been registered for VAT, the tax withheld shall be payable at the time o filing of the VAT return for the month in which the operation took place. The payment document verifying the payment of the calculated tax shall be considered to be a electronic tax invoicegiving the tax agent the right to a VAT credit according to Article 175 of this Code.
169.5. If the tax agent has not been registered for the VAT purposes, he shall pay upon payment of calculated tax to non-resident in accordance with this Article within 7 days and before the 20^th of following month submit the VAT declaration in accordance with the form approved by relevant executive authority. Amount to be paid to non-resident by the tax agent in accordance with this Code shall not be assigned to taxable operations, defining operation for calculation of VAT for registration of tax agent for VAT purposes. If the tax agent has made the payment to the budget of VAT calculated on the amount to be paid to non-resident, the payment document shall contain the note on payment of tax from the amount to be paid to non-resident.
169.6. When property owned by non-resident is imported, the tax agent shall be entitled to claim, upon the permission of non-resident who/which is the owner of property, a VAT credit to the tax withheld from the importation. In this case the tax agent shall be considered taxpayer and be responsible for the payment of VAT when further realizing (except for exporting) that property.
169.7. The tax agent no later than within 20^th of the following month upon the payment to non-resident, shall submit to the tax authority the declaration on payment of VAT in accordance with the form established by the relevant executive authority.