fix tag delete following resource create

azure/services/tags/tags.go

@@ -105,13 +105,14 @@ func (s *Service) Reconcile(ctx context.Context) error {
 					return errors.Wrap(err, "cannot update tags")
 				}
 			}
-
-			// We also need to update the annotation if anything changed.
-			if err := s.Scope.UpdateAnnotationJSON(tagsSpec.Annotation, newAnnotation); err != nil {
-				return err
-			}
 			log.V(2).Info("successfully updated tags")
 		}
+
+		// We also need to update the annotation even if nothing changed to
+		// ensure it's set immediately following resource creation.
+		if err := s.Scope.UpdateAnnotationJSON(tagsSpec.Annotation, newAnnotation); err != nil {
+			return err
+		}
 	}
 	return nil
 }

azure/services/tags/tags_test.go

@@ -218,6 +218,7 @@ func TestReconcileTags(t *testing.T) {
 					},
 				}}, nil)
 				s.AnnotationJSON("my-annotation").Return(map[string]interface{}{"key": "value"}, nil)
+				s.UpdateAnnotationJSON("my-annotation", map[string]interface{}{"key": "value"})
 			},
 		},
 	}