Knowledge base / Taxes
VAT in Armenia: when a business becomes a VAT payer
Who pays VAT
You are a VAT payer if
- You are on the general regime. A new business that does not apply for turnover tax within 20 days of registration is treated as a VAT payer.
- Your revenue exceeds AMD 115 million. This is the turnover tax limit, so going above it means losing that regime.
- You lost micro-enterprise status and did not move to turnover tax.
- You applied for voluntary registration.
For a comparison with turnover tax, see Turnover tax in Armenia.
Step by step switch to VAT
- Track your revenue
Count turnover on a running basis from the start of the year. If it approaches AMD 90–100 million, recalculate prices and contracts with VAT in mind. - File the application
This is form No. 264 in the tax office account or via the public services portal. State the ground and the date, for example the date you exceeded 115 million. Filing is free. - Calculate VAT on the excess
When you leave turnover tax, VAT is calculated on the amount of the excess. According to Vardanyan & Partners, the return for it is due within 20 days. Agree the exact switch date with your accountant. - Issue tax invoices
A VAT payer issues tax invoices in the tax authority's electronic system. See our e-invoicing guide. - File a return every month
The combined VAT and excise return is due by the 20th of the following month, with payment on the same date. All dates are in the tax reporting calendar.
Voluntary registration: when it pays off
You can register for VAT with revenue below 115 million. A VAT payer reduces its VAT by the input VAT charged by suppliers, and any excess can be claimed back monthly. This makes sense if:
- your clients are Armenian VAT-registered companies that need input VAT to offset;
- you make large purchases with VAT, such as equipment;
- you export and want to recover VAT on your costs.
If your clients are individuals or foreigners and your costs are low, turnover tax is usually simpler. Calculate both options before you apply.
Service exports and imports
Exports. Exported goods are taxed at 0%. For services, the 0% rate applies when the recipient is outside Armenia. According to PwC, this covers advertising, consulting, marketing, design, engineering, legal and accounting services, audit and data processing. The 0% rate does not remove the need for a return and an e-invoice. For other services, check the place of supply under your contract with an accountant.
Services from foreigners. If the place of supply is Armenia, a VAT payer charges the VAT itself on behalf of the foreign supplier (reverse charge).
Imports. Goods from outside the EAEU are taxed at customs on their customs value. For goods from the EAEU, including Russia, customs does not collect VAT: the importer calculates and pays it by the 20th of the following month and files a declaration. Import VAT paid can be offset.
Common mistakes
- Missing the 20-day window for the turnover tax application and ending up on VAT by accident.
- Not noticing that revenue passed 115 million and not applying for registration.
- Skipping the return in months with no sales. A monthly return is required.
- Not recording 0% exports in the e-invoice and the return.
- Forgetting VAT on goods brought in from Russia and other EAEU countries.
If you should have registered for VAT since 2022 but did not, Law HO-234-N opened a recalculation window: the application is due by 21 December 2026 and the declaration by 31 December 2026. It is not a penalty amnesty. Check the conditions with your accountant.
Frequently asked questions
What is the VAT rate in Armenia in 2026?
The standard VAT rate is 20%. Exports of goods and many services supplied to recipients outside Armenia are taxed at 0%.
At what turnover do you have to pay VAT in Armenia?
The turnover tax limit is AMD 115 million. A business whose revenue exceeds it loses that regime and becomes a VAT payer. A new business that does not apply for turnover tax within 20 days of registration is also a VAT payer.
Can you register for VAT voluntarily in Armenia?
Yes, with an application on form No. 264, online and free of charge. It makes sense if your clients are VAT-registered companies, you have large purchases with VAT, or you export and want to recover input VAT.
When is the VAT return due in Armenia?
Every month, by the 20th of the following month. It is a combined VAT and excise return, and payment is due on the same date.
Approaching the 115 million limit?
We will compare turnover tax and VAT for your case, file the application and take over monthly returns and e-invoices. We work in English and Russian.
Sources: PwC — VAT in Armenia; Armenia public services portal — application to be a VAT payer and turnover tax application; Vardanyan & Partners — VAT registration and the HO-234-N window; Lappa — registration and imports; VATupdate — e-invoicing in Armenia; Orbitax — 115 million threshold since 2020.