International VAT Guide – Armenia
VAT rates in Armenia
How much is VAT in Armenia?
The Standard VAT Rate in Armenia is 20%.
There are no VAT-reduced rates in Armenia.
Some supplies are exempt from VAT. In this group of VAT-exempted sales, we can find the supply of medicines, basic foodstuffs, and land sales.
| Armenia VAT Rate | Rate Type | Coverage and imposition |
| 20% | Standard Rate | This applies to all taxable supplies in the country besides those that can benefit from being zero-rated or VAT-exempted |
| 0% | Zero Rate | this rate is usually applied in the case of the export of goods, works, or services, as well as for those goods, works, and services that are acquired in Armenia by diplomatic and equivalent organization |
The exact list of taxable transactions and allocated Armenia VAT rate can be found in VAT Armenia regulations.
VAT thresholds in Armenia
The Tax Code and implementing regulations are the foundations of indirect taxation in Armenia. This legislation is essential for establishing the VAT Armenia regulatory landscape.
Determining the VAT threshold in Armenia is one of the initial steps that every economic operator, whether local or foreign, needs to evaluate before commencing his business activity to prevent any possible breach of law and implied penalty at the very beginning of his operations.
VAT registration threshold for resident businesses: 115 million AMD.
VAT registration threshold for non-resident businesses: In most cases, there is no registration threshold for foreign businesses with a permanent establishment in the country.
VAT registration threshold for foreign providers of digital services: No threshold.
VAT Taxable Activities in Armenia
A taxable person, according to the VAT Armenia regulation, is a legal person or individual who carries out economic activity independently and continuously, regardless of the result of such activity.
Types of taxable activities that trigger the imposition of Armenia VAT:
- Supply of goods
- Provisions of different kinds of work
- Provision of services
- Import of goods
The above-indicated categories of taxable activities are determined in general terms. For other connected forms of taxable activities where the economic operator is obliged to impose Armenia VAT, the concerned supplier should evaluate domestic regulations in more detail.
Tax Representative in Armenia
Foreign service providers or goods vendors’ obligation to acquire the services of the local tax agent varies depending on the taxable supply type.
Tax registration
Standard Registration
The Armenian Tax Code states that persons should register for VAT if they carry out a business activity and their turnover exceeds AMD 115 million in the preceding tax year.
Persons who don’t have an obligation to register can do it voluntarily.
Persons required to register can follow the registration procedure online(using the Tax Authority’s web portal) or in person.
Domestic or foreign economic operators mandated or eligible to register for tax under the standard rules can submit their application on paper or online after the completion of company registration but before the commencement of their chosen business operation in Armenia.
Simplified tax registration
Non-resident suppliers without any establishment in the country providing specified electronic services to natural persons should register for local VAT before commencing their activities.
Foreign providers can register in a simplified manner using the e-VAT system administered by the Tax Authority.
VAT on Electronically Supplied Services in Armenia
Digital Services
Foreign providers of electronically supplied services should register for VAT in Armenia and charge an adequate VAT rate for their supplies.
How much is VAT in Armenia for Electronically Supplied Services?
VAT rate Armenia: A standard VAT rate of 20% is applied in most cases on sales of Electronically Supplied Services in Armenia
| Example of taxable ESS in Armenia ↓ |
| Supply of digital products, such as software, connected changes, and updates of the software |
| Services that can be downloaded through the internet and saved on computer and/or mobile devices |
| Supply of music, films, and games, including games of chance and gambling games Services that are ordered online but delivered in a physical location (e.g., short-term accommodation, rental of transport services). For example, the services are supplied through the online digital platforms set up by the foreign entity and used at a physical location in Armenia. |
| Supply of distance learning |
| Access or download of music to a physical device |
| Access or downloading of images, jingles, films, ringtones, and other audio output |
E-Commerce VAT Rules in Armenia
If non-resident sellers of physical goods to end customers don’t have a physical presence in the country, they are mandated to register for Armenia VAT in most cases.
Online vendors that exclusively supply physical goods through e-commerce platforms aren’t automatically obliged to register for VAT. In most cases, the e-commerce platform operator acts as the importer of record and will take care of the VAT compliance requirements for these transactions.
However, if the online vendor has a physical presence or warehouse in Armenia and the total value of the imported goods exceeds the threshold specified for these occasions, it should pursue the registration procedure.
Invoicing Rules
There are different rules concerning the type of invoice the supplier should issue. Invoices can be categorically differentiated between paper and electronic ones.
Taxable persons who make non-exempted supplies or provide services must issue a tax invoice that meets the requirements of the Tax Code.
Invoice Requirements in Armenia
The invoice should contain at least the following:
- Date of invoice issuance;
- Unique invoice number and series.
Seller information:
- Company name;
- Full address (head office);
- Billing address if different from company address;
- VAT number.
Customer information:
- Name;
- Full address;
- VAT number (if applicable);
- Other relevant ID information depending on the invoice type.
Fiscal Information:
- Description and breakdown of the goods or services – quantity, discounts, unit price, excl. VAT;
- Total without VAT;
- VAT amount;
- The VAT rate(s) applied and the breakdown of VAT per rate;
- Invoice Total.
Additional information required in particular cases:
- Exemption reference – guaranteed by precise norm;
- Reverse charge – term if applicable;
- Self-billing – term if applicable;
- Tax Representative information for non-resident business.
Foreign Currency Invoice in Armenia
In Armenia, it’s permissible to issue tax invoices in foreign currencies, but the VAT amount on the invoice and sales amount should be converted to local currency.
VAT Return in Armenia
Standard Return
Taxable persons not eligible for the simplified return filing should follow the general VAT and accounting rules regarding tax reporting. Most taxable persons should submit a return on a monthly reporting basis.
The return should be submitted by the 20th day following the end of the reporting period, and the payment of owed tax should be handled before submission.
The submission of the return can be done on paper or electronically.
Standard Armenia VAT Return
| VAT Return Name | VAT Tax Return |
| Filling frequency | Monthly or Quarterly |
| Online Filling | Possible |
| Annual Return | No |
| Filing deadline | 20th following the reporting period |
| Payment deadline | Before submission of the return |
| Payment currency | Armenian Dram |
| Language | Armenian and Russian |
| Local VAT acronym | ԱԱՀ-ն |
Penalties for late reporting and omitted declarations
Taxpayers should charge Armenia VAT on their transactions when the responsibility rises and submit the VAT return. If they do the return fillings after the deadline, they can expect to allocate more funds than they would if they had filled the return within the permitted time frame.
If a taxable person makes a late payment, late registration, or erroneous declaration, different types of penalties could be assessed against the non-compliant taxable person.
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