Armenia applies VAT on digital services

6 January 2022

From 1 January 2022, Armenia will impose VAT on the sale of e-services to local consumers by non-resident businesses.

Prior to January 2022, non-resident businesses providing these digital services in Armenia did not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over Armenian resident providers, the Armenian tax authorities have confirmed that VAT will be charged at 20% on these types of transactions from 2022.

This new tax will only apply to non-resident businesses with annual sales in Armenia above a calendar year threshold of AMD 115 million (approx. £170,000), and the new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software, and internet services.
 

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