Entities before becoming VAT payers are considered as simplified taxpayers (see Analyse in Section 16). But when entities exceed the before mentioned threshold, they become VAT payers within the given reporting quarter and during one year after that, irrespective of the volume of revenues gained during that period.

Import of goods are generally taxed by VAT on the border of the Republic of Armenia (VAT calculated and imposed by the customs bodies) at 20 % too.

VAT shall be recognized at the time the supply takes place i.e.
- goods: the date stated in the sales contract and in other cases, the
delivery date or payment date,
- services: the day they have been rendered or paid for.

Taxable turnover of:
- delivery of goods and services is the monetary equivalent of the value of goods and services (including all fees and payments made),
without VAT, paid by the purchaser to the seller as an indemnity;
- imported goods is the custom value, custom duties and excise tax;
- imported goods, which have been earlier exported for the purposes
of processing, or repair, is the price of processing, or repair due to
foreign enterprises as indemnity;
- mediation services is the amount of fee, paid for these services on
VAT exclusive basis;
- provisions of goods and services on free or partially free
consumption basis is their current reliable market value (price) on
VAT exclusive basis; etc.

In case when Armenian VAT payers participate in delivery of goods and services performed by foreign companies or individuals, that are not registered in the Republic of Armenia, and in case of acting on behalf of or at the expense of foreigners, the mentioned VAT payers are considered suppliers of these goods and services and therefore, payers of the tax.

VAT is payable on a monthly or quarterly basis by the 20th day of the month following the relevant period of taxation. VAT on imported goods must be paid within 10 days from the date of importation.

Export of goods or services are zero-rated.

Export of services means export of services directly related with:
- export of goods,
- transportation of passengers, baggage, loads and post, implemented
outside the territory of the Republic of Armenia,
- processing and assembly of products from the raw material and materials of foreign entities on the territory of the Republic of Armenia exported outside the territory of the Republic of Armenia, etc.

Main exemptions from tax liability are:
- some financial and insurance services,
- training and education,
- scientific and research works,
- radio and television broadcasting,
- sales of newspapers and magazines,
- sales of agricultural products produced in the Republic of Armenia,
- insurance and social insurance services.