The "Netflix" streaming platform, with millions of users worldwide, has become widespread in Azerbaijan in recent years. To become a member of the platform and watch films, series, and animated films produced by "Netflix", the monthly subscription fee is 7.99 euros (basic), 9.99 euros (standard), and 11.99 euros (premium). Since "Netflix" allows access to the same subscriber account from 3 different devices, people in our country prefer to access the platform from the same account and divide the monthly subscription fee into 3 parts for use. Thanks to this, hundreds of thousands of families in our country regularly access the "Netflix" platform, and these numbers continue to grow.
The problematic aspect of the issue is that "Netflix" has been aggressively promoting "LGBT" through its products under the slogan of inclusivity since its inception. Specifically, films and series extensively feature representatives of sexual minorities – homosexuals and transgender people, and values that may raise questions about sexual orientation, especially among children and adolescents, are promoted.
Thus, the content of some films and series broadcast on the platform, which provides services in 190 countries, including Azerbaijan, causes serious concern. Some of this content conveys messages that contradict national-moral values, the institution of family, and traditional societal views.
Precisely for this reason, the examination of Netflix's activities and the content it broadcasts through the prism of the country's value system has become a topical issue.
Modern.az has sent an inquiry to the Audiovisual Council regarding the broadcasting of content by "Netflix" that contradicts our national-moral values. The institution stated that currently, the "Netflix" platform is not considered a media entity regulated by legislation in the audiovisual media sector and duly registered in the Republic of Azerbaijan:
“Since the platform does not have legal status as an audiovisual broadcaster in the country, monitoring of the content broadcast on it is not carried out, and administrative or restrictive measures regarding the content are not applied. Furthermore, it is envisaged that in the future, “Netflix” and other international on-demand broadcasting services will be gradually licensed by applying to the Council, acquire legal status, operate in accordance with the requirements of the audiovisual media legislation of the Republic of Azerbaijan, and these platforms will be included in the Council's regulation and control mechanisms”.
Thus, since "Netflix" is not a registered television and media entity within the country, it is not possible to apply any monitoring or administrative measures against it. When the platform obtains a license and local legal status in Azerbaijan, the Council may impose certain requirements in accordance with the legislation (age restrictions, content categories, etc.).
On the other hand, a total ban cannot be imposed on "Netflix" solely due to "LGBT" propaganda, because “the depiction of LGBT themes” is not explicitly listed as a prohibited category. Prohibitions primarily apply to areas such as pornography, promotion of violence, extremism, state security, etc.
The State Tax Service under the Ministry of Economy informed our website that VAT amounts paid to non-residents for services provided via e-commerce by "Netflix" are calculated by the banks processing the payment and transferred to the state budget. This is regulated by Article 169.3 of the Tax Code. That is, currently, when an Azerbaijani citizen pays a Netflix subscription fee, the bank processes the payment, calculates 18% VAT on that amount, and transfers that VAT to the state budget.
In other words, since Netflix itself is not registered in Azerbaijan, the VAT is effectively paid by the consumer, while the bank transfers it to the budget as an intermediary.
The Tax Service stated that, according to the latest amendment to the Tax Code, non-resident companies that do not have a physical office in Azerbaijan but provide digital services here (Netflix, Spotify, Google, etc.) will themselves register for VAT in Azerbaijan, calculate the VAT themselves, and pay the tax directly to the state.
"Already, through a special platform developed in this direction, a number of non-resident transnational companies providing digital services are being registered for tax purposes electronically and are paying their taxes directly to the state budget. When they are registered for VAT purposes, the tax amount is calculated and paid by them, which eliminates the need for local consumers to pay tax on behalf of non-residents providing digital services. As a result, the additional tax burden on citizens decreases, the reputation and business interests of non-residents are protected, and state budget revenues increase.
Additionally, we inform that relevant proposals have been prepared for the mandatory tax registration of non-resident individuals providing work and services through e-commerce, and the project is currently under discussion in the National Assembly. The adoption of the project will create conditions for the expansion of tax registration of non-resident e-commerce participants providing digital services, as well as for the development of a digital economy in line with international standards”, the institution stated.
Writer-culturologist Aydın Khan Abilov made a statement.
He noted that a sufficient number of erotic and pornographic films and clips are accessible to people to varying degrees on open or closed video sharing resources on the internet:
“They have been either wholly or partially banned in accordance with the legislation of the Republic of Azerbaijan. Controlling a platform like "Netflix" is somewhat difficult. Firstly, we do not have the criteria to determine it. For this, it is necessary to know to what extent films are abundant with erotic scenes. Prohibitions on the display of films related to the lifestyle of people suffering from homosexuality and other sexual deviations are almost non-existent by international standards. This is because it can also be perceived as a step against human freedom. Netflix does not beg anyone to buy its productions. This is voluntary trade. There are also scientific and educational films on that platform. Why don't we watch them? There is a problem with our aesthetic intellectual level. Why did ballet, opera, and theatre not become popular, but Netflix's aforementioned materials gained fame?", he said.
