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Armenia VAT on B2C digital services; platform liabilities clarified

Non-resident e-services VAT obligations from January 2022; change to quarterly reporting; marketplaces must register

The Caucasus state of Armenia implemented Value Added Tax on non-resident providers of digital services on 25 November 2021. This followed the EU 2015 digital services VAT model, requiring VAT to be charged and collected in the country of resident of the consumer. In November 2021, it further clarified the obligations for non-residents from January 2022 without a permanent presence to register and charge VAT – in particular for marketplaces which up until then had no special VAT obligations. Major marketplaces were consulted on the changes, including: Google, Facebook, Booking.com, Netflix, Amazon, Spotify and more.

B2B services are treated as nil-rated by the foreign provider of e-services, and the Armenia VAT registered resident business should use the reverse charge. Note: the provider should check their customer’s Tax Registration Number. For regular free updates register for our global VAT and GST news.

What services liable to VAT in Armenia

The latest law clarifies the definition of digital services as: “the delivery of services over information and telecommunications network, including the Web (Internet), the provision of which is impossible without the use of such information technology.”

  • Advertising
  • Streaming or download media
  • E-books
  • Automated e-learnings
  • (further to be clarified in 2022)

The current VAT rate in Armenia is 20%.

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

Determining place of supply for Armenian VAT

The provider will have to rely on evidence of the consumption of the digital or electronic services in the country to establish Armenian VAT is due. This can include:

  • Address of customer
  • Address of paying bank or electronic wallet
  • IP address
  • Telephone country code

Quarterly VAT returns introduced

The Armenian VAT registration threshold is AMD 115million (approx €200,000). Non-residents do not have to appoint local Fiscal Representatives to VAT register in Armenia.  Once registered, electronic VAT returns must be submitted quarterly (up until Oct 2021 had been monthly) by the 20th of the following month along with the payment of any VAT due. Reporting may be in Russian or English languages.

Registering and completing Armenian or other global VAT or GST returns is complex, time consuming and fraught with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.

Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% TBC P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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