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Significant changes await those involved in online commerce and those who regularly shop online in Azerbaijan in the near future. According to the new amendments proposed to the Tax Code, individuals providing services or goods on internet platforms must register for tax accounting within one month if their annual turnover exceeds $10,000. This rule will apply to both individual sellers and large online trading networks.
Economist expert Asif Ibrahimov stated in his statement to Demokrat.az that this step will lead to certain price fluctuations in the market.
“As a result, a price increase may be observed in the short term in products such as clothing, cosmetics, household goods, and daily necessities. The most serious impact is expected for small and informal sellers who sell through social networks. The new requirements may create serious financial and organizational difficulties for sellers in this category. However, the risk of a sharp increase in prices is considered relatively low for large online trading companies that are already registered for tax and operate systematically. Because these companies have already taken into account the current tax burden in their pricing policy. In the long term, there are also positive aspects to the changes. The draft law allows for increased transparency in online commerce, a reduction in informal turnover, and the formation of a more fair competitive environment in the market. This may lead to price stabilization, protection of consumer rights, and an increase in product quality over time.”
The expert believes that a sharp increase in prices is not expected in large companies that already operate transparently and pay taxes. Because these institutions have already structured their financial plans in accordance with current legislation. The long-term benefits of the process are more related to transparency. Fair competition in the market will protect consumer rights and prevent artificial price increases in the future.