Frequently asked questions about Armenia VAT
What is VAT?
VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It is generally chargeable on all taxable goods and services supplied in Armenia. It is a consumption tax because it is ultimately borne by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Where a foreign organization (such as Zoom) provides electronically supplied services to customers that are not registered for VAT in Armenia, there is a requirement for Zoom to collect VAT on the supplies and remit the VAT to the State Revenue Committee of The Republic of Armenia.
If you are a business customer, you should provide your Armenian VAT number to Zoom and a declaration that you are registered for VAT in Armenia. If the VAT number is valid and you confirm that you are registered for VAT in Armenia, then no VAT will be charged on the supplies made to you by Zoom.
Why am I being charged VAT?
Video conferencing services and telecommunication supplied by Zoom fall within the VAT on e-commerce rules concerning electronically supplied services by non-resident service providers to non-VAT registered customers in Armenia.
If you are VAT registered in Armenia, you should provide your VAT Identification Number (VAT ID) to Zoom (see ‘How do I enter my VAT Identification Number (VAT ID)?’ below for details on how to do this) and confirm that you are VAT registered in Armenia. If the VAT ID is valid and if you confirm that you are a VAT registered business customer, then no VAT will be charged on the supplies made to you by Zoom. If you do not have a valid VAT ID or do not confirm that you are registered for VAT in Armenia, then VAT will be charged on the supplies made to you by Zoom.
What is a VAT Identification Number (VAT ID)?
A VAT Identification Number (VAT ID) is a unique number issued by the State Revenue Committee of The Republic of Armenia to registered taxpayers in Armenia in the format [12345678/1].
Does Zoom have a VAT ID?
Yes. Zoom’s VAT Number will be shown on the invoice it issues to you.
How do I enter my VAT ID?
To provide your VAT ID, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom performs periodic validation checks of customer VAT Registration Numbers to ensure that the VAT Registration Numbers remain valid. If, during these periodic validations, it is identified that your VAT Registration Number is invalid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid VAT Registration Number is provided.
You are required to notify us if there is a change to your VAT registration status.
- Sign in to the Zoom web portal.
- In the navigation menu, click Plans and Billing then Billing Management.
- In the Contact Information section, click Edit.
- Select the VAT Registered check box, then click Yes to acknowledge that you are registered for VAT in Armenia.
- Enter your VAT Registration Number.
- Click Save.
Billing portal under Account Management
- Sign in to the Zoom web portal.
- In the navigation menu, click Account Management then Billing.
- Click the Billing Information tab.
- To the right of Sold To Contact, click Edit.
- Select the VAT Registered check box, then click Yes to acknowledge that you are registered for VAT in Armenia.
- Enter your VAT Registration Number.
- Click Save Changes.
How is Zoom determining which customers VAT applies to?
If a customer's ‘Sold To’ location is in Armenia, and the customer has not provided a valid Armenian VAT ID and/or confirmation that you are registered for VAT in Armenia, Zoom will charge VAT on its invoices.
It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.
Is there a minimum threshold purchase amount before VAT is applied?
No, where a customer in Armenia has not provided a valid Armenian VAT ID or confirmed that it is a VAT registered business customer, Zoom will charge VAT on all supplies made to you.
Are there any special exemptions applicable for charities or other business organizations under which VAT may not be charged?
There are no VAT exemptions applicable to non-profit organizations or international agencies in Armenia. If you have any questions regarding tax exemption in Armenia, submit a request to Zoom Support.
Are there any VAT obligations for me as a customer?
If you have provided a valid VAT ID and confirmation that you are registered for VAT in Armenia to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to declare and pay VAT under the “reverse charge” mechanism in your VAT return.
There is no VAT obligation for a customer who is not registered for VAT in Armenia. However, Zoom will charge VAT on its supplies to you.
What if I have a VAT ID and forget to enter it?
The VAT ID can be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no VAT ID and/or confirmation that you are registered for VAT in Armenia is entered at the time the next invoice is issued, VAT will be charged until a valid VAT ID and confirmation that you are registered for VAT in Armenia is entered.
If a valid VAT ID is entered and VAT has previously been charged on the invoices issued to you, then upon request by you, Zoom may refund any VAT included on invoices issued in the thirty days prior to a valid VAT ID being provided. However, VAT will not be refunded on any invoices issued outside of this thirty-day period.
Decision tree – My “Sold To” address is Armenia, will I be charged VAT?
Disclaimer
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules in Armenia. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.