Armenia VAT Guide 2026

Overview — VAT in Armenia

VAT in Armenia is governed by the Tax Code of the Republic of Armenia and administered by the State Revenue Committee (SRC). The tax applies to the supply of goods and services by registered persons in the course of business, and to imports. Armenia operates a standard input-output VAT credit system, allowing registered businesses to recover input VAT on purchases used for taxable supplies. Businesses with annual turnover exceeding AMD 115 million must register for VAT. Voluntary registration is permitted for businesses below the threshold. VAT returns are filed quarterly, with payment due by the 20th of the month following the quarter.

VAT Rate Structure

Armenia has a two-rate VAT system with an additional exempt category:

• Standard rate — 20% on most goods and services
• Zero rate (0%) — exports of goods, international transport services, and related services
• Exempt supplies — financial services (banking, insurance), educational services, medical services, residential property rent, and postal services

Zero-rated supplies allow the supplier to reclaim input VAT, while exempt supplies do not. Businesses making only exempt supplies cannot register for VAT and cannot recover input VAT.

Registration Threshold — AMD 115 Million

Businesses with annual turnover of AMD 115 million or more must register for VAT with the SRC. The threshold applies to the total value of taxable supplies in the preceding 12 months. Once registered, the business issues VAT invoices showing the VAT amount separately. The application for registration is submitted through the SRC's online portal. Non-resident businesses providing electronic services to Armenian consumers may also be required to register for VAT under the e-services rules. Failure to register when required attracts penalties.

VAT Filing & Payment

VAT-registered businesses must file returns quarterly by the 20th of the month following the quarter. The VAT return includes output VAT on sales and input VAT on purchases. The net VAT liability (output minus input) is payable at the time of filing. If input VAT exceeds output VAT, the excess may be carried forward or refunded subject to SRC approval. Late filing attracts penalties of up to AMD 50,000 plus 0.04% interest per day on unpaid tax. The SRC conducts regular VAT audits and may perform inspections to verify compliance.

VAT Exemptions & Special Schemes

Armenia provides several VAT exemptions and special regimes:

• Import of goods — certain imports are exempt from VAT including humanitarian aid, diplomatic goods, and personal effects
• Small business exemption — businesses below the AMD 115 million threshold are not required to charge VAT
• Agricultural producers — special VAT regime for agricultural producers with reduced compliance requirements
• IT sector — certified IT companies may benefit from VAT exemptions on certain supplies
• Investment projects — VAT exemptions available for large investment projects approved by the government

FAQs

Can a business below the AMD 115M threshold voluntarily register for VAT?

Yes, voluntary registration is permitted. This may be beneficial if the business makes zero-rated supplies (exports) and wants to reclaim input VAT, or if it deals primarily with VAT-registered customers who need VAT invoices.

How long does a VAT refund take?

VAT refunds are typically processed within 30–60 days after filing the return. The SRC may conduct a pre-refund audit for larger amounts. Accelerated refund procedures are available for exporters.

What is the penalty for late VAT filing?

Late filing attracts a penalty of AMD 50,000 for each month the return is overdue. Late payment attracts interest at 0.04% per day on the unpaid amount. The SRC may also suspend the taxpayer's operations for persistent non-compliance.

Disclaimer

This guide provides general information about Armenian VAT for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Armenian tax advisor or the State Revenue Committee for advice specific to your situation. InvestmentKit does not provide tax advice.