December 15, 2021
Armenian National Assembly ratifies Law introducing concept of electronic services in the Tax Code
On 25 November 2021, the Armenian President signed the law ratified by the National Assembly introducing the concept of electronic services and related regulations (the Law) in the Republic of Armenia Tax Code.
According to the Law, the provision of electronic services will be considered the provision of services via an information and telecommunication network (electrical connection), including via the internet, the provision of which is impossible without the use of information technology.
The list of electronic services will be defined by the Government and published on the official webpage of the Tax Authority.
The Law prescribes that the place of provision of electronic services1 is considered:
A nonresident organization that does not have a permanent establishment in Armenia and provides electronic services to Individuals must be registered with the Tax Authority in accordance with the procedure defined by the Government.
The moment of provision of electronic services to the Individuals will be the last date of the quarter in which the payment for the electronic service is made in proportion to the amount paid.
The reporting period for the nonresident organization for filing a VAT return with the Tax Authority and making a VAT payment arising from the electronic services shall be the reporting quarter and be due on the 20th of the month following the reporting quarter.
The list of electronic services that fall under the above regulations is to be defined by the Government, and published on the official website of the Tax Authority by the end of the year. Based on the information currently at hand, the following service providers will be affected by the Law:
The Law will enter into force on 1 January 2022.
Taxpayers should take action to understand and meet the VAT requirements arising after the adoption of the Law, including:
For additional information with respect to this Alert, please contact the following:
Armenia Ernst & Young CJSC, Yerevan