How VAT works for freelancers in Armenia

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Disclaimer:

This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.

What is Armenia VAT, and why does Upwork collect it?

Value-added tax (VAT) is a tax on goods or services, including our services to you. Armenia requires Upwork to collect and send it to the government of Armenia unless you provide us with a valid VAT ID in your tax information.

We’re required to comply with the tax laws of countries where we do business to operate there.

What does Armenia VAT apply to for freelancers?

Here's some examples of services that VAT applies to:

Membership fee
Freelancer Service Fee
Connects purchases

Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.

What is the Armenia VAT rate?

It's 20% of the cost of the service being taxed.

Example: If you pay $100 USD in Freelancer Service Fees, you'll pay $20 in tax, for a total of $120.

You’ll see the estimated amount of tax when you check out (for purchases) and the final charge on your invoices and in your transactions.

Am I required to provide an Armenia VAT ID to work on Upwork?

No, but If you provide a valid VAT ID to Upwork in your tax information, we will not have to collect this tax from you. We'll also display the VAT ID you provide on your invoices.

How do I enter my Armenia VAT ID on Upwork?

Go to Manage finances > Tax information
Click the pencil icon to enter or edit your info
Select Save

Once you do, we’ll check whether the VAT ID you provide is valid and give you a prompt response when you enter it. You can also see your VAT ID status on your Tax information page.

What's the Armenia VAT ID format?

It's a unique ID that you may request from your government by registering for VAT — not your tax identification number. It has nine numeric characters that end with a 1 and should look like this, for example: 1234568/1

To learn more, visit the Armenia tax authority’s website.

Does Armenia offer any exemptions to VAT?

Armenia does not offer any applicable exemptions from VAT, but you can avoid having VAT collected by Upwork by providing a valid VAT ID.

What happens to Armenia VAT if I change my location or information?

If you change locations and update your tax residence in your account's tax information, we'll automatically adjust what we collect to correspond with any taxes that apply in your new country or jurisdiction. You may have to enter a new VAT or similar ID..
If you make other changes to your information, such as changing your legal name, you may have to revalidate your VAT ID.

Who does Upwork collect VAT from in Armenia?

Armenia’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Armenia and have not provided us with a valid VAT ID.

Do you still collect VAT if I’m only residing in Armenia temporarily?

Yes. As long as your tax residence is set to Armenia, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.

If I pay VAT before I enter a valid VAT ID, will you refund that money once I do?

No, we send that money directly to Armenia government and cannot refund it. You may be able to claim a credit with your tax authority for what you paid. We recommend that you consult with your government’s tax authority or your tax advisor for more information.