Nonresident providers of electronic services subject to VAT

Armenia has extended the scope of its VAT rules to nonresidents; as from 1 January 2022, nonresident suppliers of electronic (digital) services to Armenian recipients have VAT obligations. The president signed a bill on 25 November 2021 that revises the tax code to bring nonresident suppliers within the Armenian VAT net by including rules to determine when services will be considered to be provided in Armenia, the type of services that will be deemed to be electronic services, and the methods for calculating and paying the VAT due. The rules differ, depending on whether electronic services are provided to an individual or a legal entity, and whether or not the recipient is VAT-registered. Where services are deemed to be provided in Armenia, the VAT rate is 20%.

Source BDO