Armenia’s government has introduced a draft Digital Services VAT law to parliament. Under the new law, non-resident businesses supplying digital services to customers in Armenia must register and account for VAT.
Armenia’s tax authorities explain that the law requires companies such as Google and Facebook to register for VAT. All providers must account for and pay VAT on a quarterly basis.
Digital services VAT in Europe and beyond
Electronic services supplied over the internet are, by their nature, global in nature. If you supply digital services online, there are very low technical barriers to entering new markets.
For this reason, the rapid growth of digital services poses a challenge of tax authorities. Increasingly, policymakers are concerned about creating a level playing field for local businesses, that are generally obliged to register and account for VAT in their country of residence, and nonresident businesses.
It is therefore not surprising that tax authorities throughout Europe are adopting digital services VAT. Indeed, digital services VAT is an increasingly global phenomenon. From South Africa to the Philippines, authorities have adopted, or are planning to introduce, digital services VAT.
A one-stop Digital Services VAT solution
If your company offers services online, you likely have VAT obligations in multiple countries. Managing your global VAT obligations is complex, but Vatglobal’s proprietary VAT technology makes global compliance simple, efficient and cost-effective.
Get in touch with Vatglobal to stay one step ahead of changing global VAT regulations. We’ll provide the expert advice and information you need to ensure you are always 100% compliant.