Understanding VAT Registration Triggers and Thresholds in Armenia

What creates a VAT registration obligation in Armenia?

In Armenian VAT law, what triggers your registration obligation depends on whether your business is locally established or a foreign company selling into Armenia. There are two different sets of rules, and they work very differently.

Rules for resident businesses (local physical presence)

A resident business is required to register for VAT once its annual turnover exceeds AMD 115,000,000. Key details include:

• The threshold is based on local Armenian sales only, not global revenue.

• Both B2B and B2C sales count toward the threshold.

• Zero-rated supplies, such as exports, are included in the threshold calculation.

• Exempt supplies are also counted.

• The measurement period is the calendar year (current or prior year).

• The threshold resets on January 1 each year.

• There is no forward-looking test. Registration is required after the threshold is crossed, effective from the date specified on the registration certificate.

Below the AMD 115 million threshold, businesses may opt for the turnover tax regime, a simplified alternative to VAT at rates ranging from 1.5% to 10%.

Rules for non-resident remote sellers

Non-resident companies selling B2C electronic services to Armenian individuals are subject to entirely different rules:

• There is no threshold. VAT registration is required from the very first B2C sale.

• Non-residents cannot benefit from the AMD 115 million small business exemption.

• For B2B sales to VAT-registered Armenian buyers, registration is generally not required. The reverse charge mechanism applies, and the Armenian buyer self-assesses VAT.

• However, if a non-resident sells to Armenian businesses that are not VAT-registered (for example, those operating under the turnover tax regime), the non-resident must register and charge VAT because the reverse charge does not apply to non-VAT payers.

• If a non-resident establishes a permanent establishment (PE) in Armenia, full standard VAT registration is required.

Quick comparison: resident vs. non-resident obligations

Do marketplace-facilitated sales affect my registration obligation?

If a marketplace platform acts as a deemed supplier for your transactions, those sales are attributed to the platform and not to you. They do not count toward your own registration threshold. If the marketplace collects and remits VAT on your behalf, you are generally relieved of the collection obligation for those specific sales.

What happens once I know I have a registration obligation?

Once you've confirmed that a registration obligation applies to your business, the next step is choosing the right registration scheme and understanding your filing requirements. See Article 5: VAT Registrations in Armenia Explained for a full breakdown of the available schemes, filing frequencies, and payment options.

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