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 | 10% | Feb 2022 | LAK 400m | |
| Malaysia | 8% | Jan 2020 | RM500,000 | |
| Nepal | 13% | Jul 2022 | Rupees 2m | Also 2% DST |
| New Zealand | 15% | Oct 2016 | NZD 60,000 | |
| Pakistan | 2% | Sep 2021 | Nil | Marketplace Withholding VAT |
| Palau | 10% | Jan 2023 | $300,000 | |
| Philippines | 12% | 2024 ? | P 3million | |
| Singapore | 9% | Jan 2020 | S$ 100,000 | |
| South Korea | 10% | Jul 2015 | Nil | |
| Sri Lanka | 18% | 2025? | LKR 60m | Proposals only |
| Taiwan | 5% | May 2017 | NTD 480,000 | |
| Tajikistan | 14% | Jan 2021 | ||
| Thailand | 7% | Sep 2021 | 1.8m Baht | |
| Uzbekistan | 12% | Jan 2020 | Nil | |
| Vietnam | 10% | Dec 2020 | – |
