Tax rate by region Armenia

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Navigating SaaS Sales Tax in Armenia: A Comprehensive Guide

 

Armenia adopted a Value Added Tax (VAT) system in 1998, aligning with international practices and aiming for improved tax collection. This guide delves into the specifics of SaaS sales tax in Armenia, equipping businesses with the knowledge and tools they need for compliance. We’ll explore the current VAT rate, exemptions, filing requirements, record-keeping necessities, and best practices for efficient management of your SaaS tax obligations.

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Armenia

Armenia adopted a VAT system in 1998, aiming to improve tax collection and align with international practices.

Official government link: State Revenue Committee

20.00%

E-products and services VAT/Sales tax rate

10.00%

Reduced tax rate

Reduced tax rate product categories

No specific reduced tax rate for digital goods and services

Exempted product categories

No digital goods or services categories are exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

After the threshold has been exceeded

Online registration possible

Yes

Local representative needed

Yes

List of digital and electronic services liable for tax

Digital products include e-books, images, movies, and videos (e.g., from Shopify or Netflix); downloadable and streaming music (e.g., MP3s from SoundCloud or Spotify); cloud-based software and as-a-Service products (SaaS, PaaS, IaaS); website and site hosting services; internet service providers; online ads and affiliate marketing income, which may be taxable under digital tax policies.

Penalties

Failure of registering may include fines, that will vary in value depending on the level of non-compliance and tax amount owned, and also legal consequences which may lead to legal actions and additional administrative penalties.

Registration threshold

AMD 115 million 

Filing interval

Quarterly

Filing deadline

By the 20th of the month following the quarterly reporting period.

E-invoicing requirements

Yes

How-To Guides: Armenia SaaS VAT

Step: 1 Threshold

Effective January 1, 2022, Armenia requires non-resident vendors of digital services to consumers (B2C) in Armenia to register for and collect VAT, regardless of the sales amount.

Step: 2 Business Registration

Non-resident companies must register for VAT purposes (for e-services) via the website of the Armenian tax authorities using the simplified e-VAT solution.

Step: 3 TIN/VAT Number

The issued ID is a Taxpayer Identification Number (TIN), issued by the State Revenue Committee (SRC) of the Republic of Armenia.

Step: 1 Standard VAT Rate

In Armenia, the standard VAT rate is 20% on electronic services.

 

Step: 2 VAT Formula

To calculate your tax amount, consider the following formula:

VAT Amount = Net Price X 20%

Step: 1 Selling B2C

The non-resident supplier is required to charge, collect, and remit the 20% VAT to the Armenian state budget. The place of supply is deemed to be Armenia if certain criteria (e.g., recipient’s bank/e-wallet location, IP address, telephone country code) are met.

 

Step: 2 Selling B2B

  • To a VAT-registered legal entity: The non-resident supplier does not charge the VAT. The Reverse Charge Mechanism applies, shifting the liability to the business customer (recipient).
  • To a non-VAT-registered legal entity: The non-resident supplier is responsible for collecting the 20% VAT and paying it to the state budget.

 

Step: 3 Invoice Requirements

In Armenia, standard commercial documentation is acceptable for non-residents.

Step: 1 Filing Interval

In Armenia, registetered tax payers are obligated to file for tax on a quarterly basis (for non-resident e-service providers).

 

Step: 2 Filing Deadline

The official filling deadline is the 20th day of the month following the end of the reporting quarter.

 

Step: 3 Submission

Tax returns are submitted and payments are made via the dedicated e-VAT solution on the official website of the State Revenue Committee (SRC). Payment options include bank transfer in multiple currencies or card payment.

 

Step: 4 Record Keeping

While it is not explicitly specified for non-residents in the search results, VAT payers typically must keep records for a minimum of 5 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Armenia’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation. 

 

 

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