Indirect tax ebook - Armenia

General tax application/Time of supply

Supply of goods

Chargeable event

Generally, VAT is due and payable by reference to the date of transfer of goods to a buyer. The goods are considered transferred once delivered to the buyer in Armenia or exported from Armenia. If the buyer is a VAT payer, then VAT shall become payable no later than the 20th day of the month following the tax period when the supply takes place.

Time when tax is due as a main rule

Tax is 'due' if a taxable person has supplied taxable goods or services and in effect creates a liability for VAT, irrespective of the submission of the tax invoice.

The VAT amount paid when importing goods and VAT on purchases of goods and services for the production purposes through a bank or post transfer is deducted from the VAT amount due. If there is a positive difference of the VAT amounts after deducting, then it should be recorded as payable.

Exceptions to the main rule

If the sales also include VAT exempt transactions, only the amounts of VAT related to the goods and services purchased for the implementation of taxable transactions at the rate of 0% and 20% may be offset. The VAT amount which could not be offset will be added to the value of the respective transactions.

If the one-time purchase amount in cash exceeds 300,000 AMD or if a monthly total purchase amount of cash transactions exceeds 3 million AMD, then the VAT on the transactions exceeding these thresholds cannot be offset.

Supply of services

Services

Activities which are not regarded as a supply of goods, are a supply of services. Lease of goods and real estate is also considered as rendering of services.

Continuous services

Generally, if services are being provided within two or more tax periods (continuous services), the VAT will not become due until after their final provision, but in each tax period for the volume of services provided in this respective tax period.

• Introduction
• Scope
• Registration
• Tax rates
• Reporting and filing
• General tax application/Time of supply
• Other local requirements