Armenia VAT Calculator – Simplify Your Value-Added Tax Calculations

ARMENIA VAT CALCULATOR

The standard VAT rate in Armenia is 20%. Businesses and individuals can use a VAT calculator to easily calculate the value-added tax on goods and services. For accurate tax planning, it’s essential to understand how the 20% VAT impacts your purchases and sales.

Zero-Rate VAT on Exported Goods & Services Exported goods and services are usually taxed at a zero VAT rate. This includes services like advertising, consulting, marketing, design, engineering, legal, accounting, audit, and data processing, as long as the recipient is outside of Armenia.

VAT-Exempt Supplies Certain services, including most financial and education services, are exempt from VAT in Armenia.

The VAT recoverable amount is the difference between the output VAT (tax you charge on sales) and input VAT (tax you pay on purchases). If the input VAT is higher, the taxpayer can claim a VAT refund from the state budget every month. Using a VAT refund calculator can help businesses easily track and manage their recoverable VAT amounts.

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Armenia Value-Added Tax (VAT) Rates, Registration & Calculation

Armenia’s Value Added Tax (VAT) system follows the European Union (EU) VAT Directive, operating on an input-output model. This means VAT-registered businesses can deduct input VAT (paid on purchases) from output VAT (charged on sales) and remit the difference to the government.

Armenia’s VAT obligations are determined by the taxable turnover of a business during the previous calendar year. If a taxpayer’s annual revenue exceeds AMD 58.35 million, they must register for VAT and account for VAT on all sales.

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How Armenia’s VAT System Works

  • The standard VAT rate in Armenia is 20%, applied to most goods and services.
  • VAT recoverable amount: If input VAT exceeds output VAT, businesses can claim a VAT refund on a monthly basis.
  • Reverse-charge VAT applies when Armenian businesses receive services from non-resident suppliers with no permanent establishment (PE) in Armenia.
  • Non-resident companies without a PE must handle VAT payments themselves if their contractual partner is not a VAT payer.

VAT Obligations for Businesses

  • VAT filing deadline: Taxpayers must submit a unified VAT and excise tax return monthly, by the 20th day of the following month.
  • Small businesses & VAT: SMEs with an annual turnover below AMD 115 million may qualify for turnover tax, which replaces VAT obligations under specific conditions.

Armenia’s VAT regulations impact both local and foreign businesses, making compliance and proper VAT calculation essential. Understanding VAT rates, registration, reverse-charge mechanisms, and refund processes is crucial for businesses operating in the country.

Armenia VAT Threshold & Registration Rules

  • Businesses with revenues above AMD 58.35 million are required to charge and remit VAT.
  • If a taxpayer’s previous year’s revenue was below AMD 58.35 million, they must only account for VAT on sales that exceed this threshold.
  • New businesses (first-year operations) must monitor their revenue, as they are only liable for VAT if they cross the AMD 58.35 million limit.
  • Taxpayers with revenues below the VAT threshold can voluntarily register for VAT, which may benefit businesses dealing with VAT-registered suppliers or seeking input tax deductions.

By understanding Armenia’s VAT threshold, registration process, and compliance requirements, businesses can make informed tax decisions and ensure proper VAT reporting.

VAT Compliance for Electronic Services in Armenia

Armenia’s tax law defines electronic services as software development, database access, remote services, online advertising, and digital consulting. VAT liability applies when these services are provided to Armenian customers.

  • VAT Registration: Non-resident companies must register with tax authorities.
  • Reporting & Payments:
    • Monthly VAT reports are required for services provided to Armenian legal entities that are not VAT payers.
    • Quarterly VAT reports apply for services provided to individual consumers.
  • VAT Rate: The standard 20% VAT applies to electronic services.

Customs Duties in Armenia (EEU Regulations)

As a member of the Eurasian Economic Union (EEU), Armenia follows a unified customs framework with Russia, Kazakhstan, Kyrgyzstan, and Belarus. The EEU promotes duty-free trade among member states and establishes common import tariffs for non-member countries.

  • Customs Levies: Importers must pay customs duties based on the declared customs value.
  • VAT on EEU Imports: VAT on goods from EEU countries is self-declared by taxpayers and paid by the 20th of the following month.
  • Exchange Rate Rules: Since June 2019, tax bases for EEU imports/exports are determined using the CBA exchange rate on the import/export date.

Excise Tax in Armenia

Excise tax applies to alcohol, tobacco, fuel, and petroleum products, whether domestically produced or imported. Taxpayers must file unified VAT and excise tax returns by the 20th of each month.

ProductTax per Unit
Beer (1L)AMD 150
Cognac (1L, aged 6–10 years)AMD 6,500
Tobacco (1,000 units)AMD 16,100
Petrol (1 ton)AMD 43,600
Diesel fuel (1 ton)AMD 14,200

Property & Vehicle Taxation

Since 2021, Armenia replaced its property tax and land tax with an immovable property tax, assessed at the municipal level.

  • Land Tax:
    • Agricultural land: 15% of net income (cadastral value).
    • Non-agricultural land: 0.25% – 1.0% of cadastral value.
  • Vehicle Tax:
    • Cars up to 120 HP: AMD 200 per HP.
    • Cars over 251 HP: AMD 500 + AMD 1,000 per HP over 150.
    • Motorcycles: AMD 40 per HP.

Property and vehicle taxes are due annually by December 1.

Turnover Tax for SMEs

The turnover tax is an alternative to VAT and Corporate Income Tax (CIT) for small businesses. Businesses involved in excisable goods must register for VAT instead.

Business ActivityTax Rate
Retail & Trading10%
Manufacturing7%
High-Tech Services1%
Public Catering12%
Rental Income10%

Turnover taxpayers must file quarterly tax reports and make payments within 20 days after the reporting period.

Payroll & Social Security Contributions

  • Payroll Tax: Employers withhold tax on wages.
  • Dividend Tax: 5% tax applies to dividends received from 2020 onwards.
  • Pension Contributions (for those born after January 1, 1974):
    • 5% of monthly salary (if below AMD 500,000).
    • 10% of salary – AMD 25,000 (if above AMD 500,000).
    • Max contribution limit: AMD 1,125,000.