Value Added Tax (Ավելացված արժեքի հարկ - ԱԱՀ) in Armenia
VAT in the Republic of Armenia is governed under Section 4 of the Tax Code of the Republic of Armenia:
- Standard VAT Rate: Flat 20.0% on the domestic supply of goods and services, imports into the customs territory of Armenia.
- Mandatory VAT Threshold: Businesses exceeding 115,000,000 AMD in annual turnover must register taxpayers (or forfeit Turnover Tax status).
- Zero-Rated (0%) Supplies: Direct export of goods outside Armenia and cross-border consulting/IT services delivered to foreign recipients are zero-rated (0% VAT with right to input VAT credit refund).
- Reverse Charge Mechanism: When Armenian entities procure software, digital licenses, or consulting from non-resident entities with no permanent establishment in Armenia, 20% reverse charge VAT applies.
- Monthly Declaration: VAT returns and tax settlements are submitted monthly by the 20th of the following month.
Statutory Regulatory Framework: Compliant with the Tax Code of the Republic of Armenia, Labor Code of the Republic of Armenia, Cadastre Committee statutory duties, and regulatory resolutions issued by the State Revenue Committee (SRC) and PSRC.