VATupdate

VAT rates in Armenia

Quick overview

Standard Rate Reduced Rate Other Rates
20% N/A 0% and exempt

The local name for VAT in Armenia is Avelacvats arzheqi hark (AAH).

There are basically 1 VAT rates in Armenia:

  • Standard VAT rate is 20%

Recent developments

For more information about (recent) rate change developments in Armenia, please click HERE.

Standard rate: 20%

This rate applies for all transactions that take place in Armenia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Examples of goods and services taxable at 0%

  • Export outside the customs border of Armenia
  • Delivery of international transportation services for carriage of consignments, mail and (or) passengers
  • For goods imported to the RA under the customs procedure “Customs Transit,” delivery of works and (or) services directly related to transportation of these goods from the customs border of their import to customs border of their export in the Republic of Armenia
  • Supply of fuel for airplanes on international flights and supply of goods for consumption during the flights for the staff and passengers of the airplanes • Supply of goods for passengers of international routes in duty-free shops in the RA, as well as supply of those goods by other taxpayers to the organizer of the duty-free shop
  • Supply of maintenance (including navigation, take-off and landing services), repair and reequipment of the means of transport for international transportation, as well as supply of services for passengers, baggage, cargo and mail on international flights and supply of services to passengers during the flights 48 Ar m e n ia
  • Supply of services (including those provided by agencies and intermediaries) directly related to the provision of services described in the preceding item
  • Performance of works and supply of services for which Armenia is not treated as the place of their delivery
  • Supply of goods for the official use of diplomatic representations, consular institutions and international organizations deemed equal thereto, as well as performance of works and supply of services to them
  • Transactions on the delivery of services by a telecommunication operator or postal communication operator duly registered in the Republic of Armenia to the respective foreign operators for which amounts payable against reciprocal services as part of international networking services are mutually cleared, pursuant to the bylaws of the International Telecommunication Union (ITU) or the World Postal Union accordingly

Examples of exempt supplies of goods and services

The term “exempt supplies” refers to supplies of goods or services that are not liable to VAT and that do not qualify for input tax deduction.

  • Supply of education at secondary schools, vocational schools for qualification and requalification and specialized secondary and higher educational institutions
  • Supply of copy books and music books, albums for drawing, children’s and school literature and school educational publications
  • Sale of scientific and educational editions published by higher educational institutions, specialized scientific organizations and the National Academy of Sciences of Armenia
  • Implementation of scientific and research programs, basic educational programs as well as organization of educational competitions, tournaments and Olympics organized in accordance with the standards established by the government of Armenia • Supply of services related to the care of children in preschool institutions, care for persons in boarding schools, children’s homes, institutions caring for disabled children and invalids and nursing homes, as well as supply of goods produced, and services rendered by the persons living under the care of these institutions
  • Supply of newspapers and magazines
  • Gratuitous supply of goods by nongovernmental, charitable and religious organizations, gratuitous performance of works and (or) rendering of services
  • Supply of insurance and reinsurance, including related services rendered by insurance mediators (third parties who establish insurance relationships between insurers or reinsurers and policyholders and support the implementation of organizational, legal and other activities) and agents
  • Supply of pension insurance, including related services rendered by mediators and agents
  • Supply of financial services by banks, persons participating in securities’ markets, payment and settlement organizations and lending organizations (certain cases)
  • Supply of prosthetic and orthopedic items, medical assistance services (including prophylactic diagnostic measures) and goods related to treatment that are prepared within the context of medical assistance by patients in prophylactic enterprises and organizations, and services rendered by them
  • Sale of irrigation water by water user associations
  • Sale of tobacco products by taxpayers who are not manufacturers and (or) importers of tobacco products
  • Organization of casinos
  • Organization of gambling (including gambling by internet), totalizator and internet totalizator • Supply of precious and semiprecious stones indicated in the list specified by the government of Armenia Ar m e n ia 49
  • Supply of goods and services within humanitarian assistance and charitable projects by foreign states, international intergovernmental organizations, international, foreign, and Armenian public organizations (including charities), religious and similar organizations and individual donors, as well as supply of goods and services directly related and essential to the implementation of such projects
  • Supply of services to the organizer and operator of a free-economic zone and the supply of goods in the territory of a free-economic zone
  • Transactions carried out within the scopes of subsidies, subventions and grant projects if these projects are awarded the endorsement of the professional commission formed by the government of the RA • Supply of the right of ownership over a share or unit in the charter or share capital of the organization
  • Supply of goods and/or provision of service within the framework of reorganization of the organization carried out as prescribed by law
  • Until 31 December 2030, the supply of spacecraft and space equipment, repairs or modernization thereof, the provision of services and (or) performance of works for earth remote monitoring satellite data transmission and processing, and for the management of spacecraft during launch, flight and landing
  • The provision of property for leasing (the portion of the value of the leased property included in the lease payment) shall be exempt from VAT in case no VAT has been assessed and paid during the acquisition of that property Option to tax for exempt supplies. The option to tax exempt supplies is not available in Armenia.

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on September 2, 2021.

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